|
|||
2010-05-07 07:00:00 CEST 2010-05-07 07:00:10 CEST REGULATED INFORMATION Aktia Oyj - Interim report (Q1 and Q3)Aktia Plc, Interim report 1.1-31.3.2010Aktia plc's interim report January - March 2010 a clear resultimprovement during the first quarter Group operating profit for January-March 2010 improved to EUR 17.5(8.2) million. Earnings per share doubled to EUR 0.18 (0.09). Net interest income rose to EUR 38.9 (32.5) million. Net commission income advanced to EUR 13.4 (9.5) million. Net income for life insurance was EUR 4.5 (5.4) million. Net income for non-life insurance improved to EUR 4.4 (2.0) million. Write-downs on credit fell on the three previous quarters 2009 and were EUR 4.6 (1.6 ) million. Aktia Bank plc's credit rating from the international credit rating agency Moody's Investors Service remained at the classification P-1. The credit quality for long-term borrowing is A1 and that for financial strength is C. All ratings have a stable outlook. Aktia expects operating profit for 2010 to be at the same level as in 2009 (unchanged). CEO's comments “Aktia had a good start to the year. The number of total customers increased notably, and stronger non-life insurance sales improved the Non-Life Insurance Company's operating profit. Our new voluntary long-term pension savings product Aktia PS was launched according to plan and assets under management rose. Aktia Capital was awarded as the best mutual fund in the category Finnish equity by Morningstar, and Lipper awarded Aktia Secura as the best Nordic mixed fund during the last five years in the category Mixed Asset EUR Aggressive.” Jussi Laitinen -------------------------------------------------------------------------------- | (EUR million) | 1-3/201 | 1-3/200 | Change | 10-12 | 1-12/20 | | | 0 | 9 | | 2009 | 09 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net interest income | 38.9 | 32.5 | 19.6 % | 39.8 | 152.2 | -------------------------------------------------------------------------------- | Total operating income | 61.0 | 47.8 | 27.6 % | 58.7 | 233.1 | -------------------------------------------------------------------------------- | Operating profit before | 22.1 | 9.8 | 125.1 % | 15.3 | 78.7 | | write down on credits | | | | | | -------------------------------------------------------------------------------- | Write-downs on credits and | -4.6 | -1.6 | 183.2 % | -5.5 | -31.7 | | other commitments | | | | | | -------------------------------------------------------------------------------- | Operating profit | 17.5 | 8.2 | 113.6 % | 9.8 | 47.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cost-to-income ratio | 0.57 | 0.72 | -20.8 % | 0.57 | 0.57 | -------------------------------------------------------------------------------- | Earnings per share (EPS), | 0.18 | 0.09 | 100.0 % | 0.10 | 0.52 | | EUR | | | | | | -------------------------------------------------------------------------------- | Equity per share (NAV), | 6.86 | 4.83 | 42.0 % | - | 6.52 | | EUR | | | | | | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 10.5 | 6.8 | 53.6 % | 5.9 | 8.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital adequacy ratio, % | 16.2 | 14.1 | 14.8 % | - | 15.9 | -------------------------------------------------------------------------------- | Tier 1 capital ratio, % | 9.6 | 9.0 | 6.8 % | - | 9.5 | -------------------------------------------------------------------------------- | Write down on credits / | 0.08 | 0.03 | 166.7 % | - | 0.51 | | total credit stock | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Dividend per share | | | | | 0.24 | -------------------------------------------------------------------------------- activity in January-March 2010 The general economic situation Interest rates remained at a low level throughout the beginning of 2010. The market's access to liquidity was supported by an injection of capital from public authorities and central banks to support the financial markets. Aktia's liquidity was supported by increasing deposits from the general public and bond issues by the Mortgage Bank. Competition for household deposits remained sharp during the start of 2010 but Aktia still maintained its market shares. During the first quarter of 2010, valuation levels for financial assets stabilised, though the Southern European economies especially caused worries. The stabilisation and a lower interest rate level reflected in favourable development of Aktia's financial assets. The amount of credit write-downs are expected to continue decreasing, and were lower than previous quarters. The financial crisis has resulted in many new initiatives for regulating banking and insurance businesses, which has brought about uncertainty concerning future capital requirements. -------------------------------------------------------------------------------- | Key figures | 2010E | 2009 | 2008 | -------------------------------------------------------------------------------- | GDP growth | | | | -------------------------------------------------------------------------------- | World | 3.8* | -1.3 | 3.0 | -------------------------------------------------------------------------------- | EU | 1.2* | -4.0 | 0.9 | -------------------------------------------------------------------------------- | Finland | 1.2* | -7.8 | 0.9 | -------------------------------------------------------------------------------- | Consumer price index | | | | -------------------------------------------------------------------------------- | EU | 1.3* | 0.3 | 3.3 | -------------------------------------------------------------------------------- | Finland | 1.1* | 0.1 | 4.0 | -------------------------------------------------------------------------------- | Other key ratios | | | | -------------------------------------------------------------------------------- | Development of real value of | 7.0* | -0.3 | -2.5 | | housing in Finland | | | | -------------------------------------------------------------------------------- | OMX Helsinki Cap | - | 28.3 | -49.5 | -------------------------------------------------------------------------------- | Interest rates 31.3.2010 | | | | -------------------------------------------------------------------------------- | ECB | 1.25* | 1.00 | 4.25 | -------------------------------------------------------------------------------- | Euribor 12 months | 2.25* | 1.30 | 1.10 | -------------------------------------------------------------------------------- | Euribor 3 months | 1.25* | 0.70 | 4.50 | -------------------------------------------------------------------------------- | Unemployment in Finland | 9.7* | 8.2* | 6.4 | -------------------------------------------------------------------------------- | * At the end of the year (Aktia's chief economist's prognosis) | -------------------------------------------------------------------------------- profit for period The Group's operating profit improved to EUR 17.5 (8.2) million. The profit for January-March 2010 increased by 121.9% to EUR 12.5 (5.6) million. Income The Group's total income increased by 27.6% between January and March to EUR 61.0 (47.8) million. Net interest income rose to EUR 38.9 (32.5) million. The positive impact of managing the interest rate risk and the continued decline of interest rates have made a significant contribution to net interest income. The derivatives used by Aktia Bank to limit its interest rate risk improved net interest income by EUR 13.7 (2.0) million. Aktia gained from its good liquidity position in the unstable situation in the financial markets. Net commission income increased by 40.7% to EUR 13.4 (9.5) million. Commission income from funds, asset management and brokering increased to EUR 8.9 (5.4) million. Card and payment services commissions improved somewhat to EUR 2.9 (2.8) million. The real estate agency business performed in line with last year and its income was EUR 1.8 (1.7) million. The lack of objects was a bottleneck limiting the growth of the real estate agency business. Net income from life insurance amounted to EUR 4.5 (5.4) million. Aktia Non-Life Insurance reported a net income of EUR 4.4 (2.0) million. Net income from the insurance businesses includes insurance premiums written, net income from investment activities, insurance claims paid and the change in technical provisions. Other operating income was EUR 1.3 (0.8) million. Expenses The Group's operating expenses in January-March amounted to EUR 38.9 (38.0) million. Staff costs increased marginally to EUR 20.7 (20.3) million. Other administration expenses increased by 6.6% to EUR 11.4 (10.7) million. Total depreciation and write-downs on tangible and intangible assets were EUR 1.8 (1.8) million. Other operating expenses fell somewhat to EUR 5.0 (5.4) million. The cost reduction measures made during 2009 will take full effect during the latter part of this year. Rating The international rating agency Moody's Investor Service updated its credit opinion of Aktia Bank plc's credit rating on 6 January 2010. Aktia Bank plc's credit quality remained at the best classification, P-1, for short-term borrowing. The credit rating for long-term borrowing is A1 and that for financial strength is C. All ratings have a stable outlook. See http://www.aktia.fi/aktia_bank/rating The covered bonds issued by the subsidiary Aktia Real Estate Mortgage Bank plc have a Moody's credit rating of Aa1. Press and Analysts' Conference 7 may 2010 at 11 - 12 a.m. Aktia's CEO Jussi Laitinen and Deputy Managing Director, CFO Stefan Björkman will present the report and answer questions. The presentation will be available at www.aktia.fi. The conference will be held at Aktia's Head Office, Mannerheimintie 14 A, 7th floor. Balance sheet and off-balance sheet commitments The Group's balance sheet total increased by 6.0% from year-end and amounted to EUR 11,186 (31.12.2009; 10,556) million. The increase in the balance sheet total is largely due to the growth in mortgage stock and the financial assets within the banking business. Total deposits from the public, associations and credit institutions fell by 1.0% to EUR 4,707 (4,754) million, of which borrowing from the public and public sector entities rose by 5.0% from the year end, totalling EUR 3,180 (3,029) million. Other refinancing increased by 13.4% to EUR 4,589 (4,046) million. This growth is largely due to an increase in debt securities issued and repurchase agreements. Outstanding Aktia Bank certificates of deposit amounted to EUR 302 million at the end of the period and bonds issued by the Group to EUR 2,722 million, which represents an increase of EUR 270 million during 2010. Aktia Bank also issued new subordinated debts and index-linked loans with a total value of EUR 22 million. In March 2010, Aktia Real Estate Mortgage Bank plc issued a covered bond of EUR 500 million with a fixed interest rate and five-year maturity. The Group's total lending to the public amounted to EUR 6,177 (6,061) million at the end of March, representing an increase of EUR 116 million. Excluding the mortgages brokered by savings and local cooperative banks that the local banks are committed to capitalising the Group's lending increased by EUR 63 million (1.3%) from the beginning of the year. Loans to private households accounted for EUR 5,024 (4,924) million or 81.3%. The housing loan stock totalled EUR 4,697 (4,598) million. In all, housing loans increased by 2.1% from the beginning of the year. New corporate lending continued to be moderate and loans to companies were EUR 787 million compared to EUR 782 million at the year-end, and accounted for 12.7% of Aktia's loan stock. Loans granted to housing associations increased by 4.0% during the period to EUR 301 (289) million and stood for 4.9% of Aktia's total loan stock. Interest-bearing financial assets available for sale increased by 6.1% to EUR 3,477 (3,277) million. Of interest-bearing financial assets, EUR 652 million relates to the insurance companies' investment portfolio and EUR 2,825 million to the banking business. These assets mainly consist of the banking business' liquidity reserve and can be used as collateral in repurchase agreements. Off-balance sheet commitments increased by EUR 23 million from the year-end and amounted to EUR 598 (575) million. This increase was largely due to unused credit facilities (loan promises and limits). Aktia Group's equity amounted to EUR 489 (466) million at the end of the period. The Group's fund at fair value amounted to EUR 70 (43) million and showed an improvement of EUR 27 million since the beginning of the year. Life insurance technical provisions amounted to EUR 827 (805) million, of which EUR 233 (210) million were unit-linked. At the end of March, total technical provisions of non-life insurance stood at EUR 134 (119) million, including EUR 9 (10) million for valuation of technical provisions at fair value on acquisition. Segment overview Aktia plc has five business segments; Banking Business, Asset Management, Life Insurance, Non-Life Insurance and Miscellaneous. Segments' operating profit before common costs -------------------------------------------------------------------------------- | (EUR million) | 1-3/2010 | 1-3/2009 | Change | -------------------------------------------------------------------------------- | Banking Business | 24.4 | 17.5 | 39.5% | -------------------------------------------------------------------------------- | Asset Management | 1.8 | 0.1 | - | -------------------------------------------------------------------------------- | Life Insurance | 3.4 | 2.5 | 37.5% | -------------------------------------------------------------------------------- | Non-life Insurance | 0.0 | -3.0 | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Miscellaneous | -2.0 | 2.2 | - | -------------------------------------------------------------------------------- | The Group's common costs | -8.8 | -8.7 | -1.4% | -------------------------------------------------------------------------------- | Eliminations | -1.4 | -2.3 | - | -------------------------------------------------------------------------------- | Total | 17.5 | 8.2 | 113.6% | -------------------------------------------------------------------------------- The segments' contribution to the Group's operating profit -------------------------------------------------------------------------------- | (EUR million) | 1-3/2010 | 1-3/2009 | Change | -------------------------------------------------------------------------------- | Banking Business | 17.4 | 10.0 | 73.7% | -------------------------------------------------------------------------------- | Asset Management | 0.9 | -0.4 | - | -------------------------------------------------------------------------------- | Life Insurance | 2.9 | 2.0 | 44.3% | -------------------------------------------------------------------------------- | Non-life Insurance | -0.5 | -3.4 | 85.1% | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Miscellaneous | -2.0 | 2.2 | - | -------------------------------------------------------------------------------- | Eliminations | -1.4 | -2.3 | - | -------------------------------------------------------------------------------- | Total | 17.5 | 8.2 | 113.6% | -------------------------------------------------------------------------------- Banking business The operating profit of the banking business before common costs increased during January-March to EUR 24.4 (17.5) million. The banking business' share of common costs was EUR 7.0 (7.5) million. The segment's contribution to the Group's operating profit amounted to EUR 17.4 (10.0) million. Operating income totalled EUR 47.0 (36.1) million. This improvement is mainly attributable to net interest income which increased by 23.5% to EUR 38.0 (30.8) million. Net commission income also increased and totalled EUR 9.9 (7.0) million. The improvement derives mainly from a higher level of net commission income from mutual funds and insurance. Operating expenses rose somewhat to EUR 25.1 (24.4) million, of which staff costs accounted for EUR 9.9 (8.8) million. The banking business' customer base increased by 3,354 private customers or 1.2% during the first three months of 2010. The number of Internet agreements was up 2.4% from the beginning of the year and amounted to 118,879. Sales activities are supported by the Aktia Dialogue concept whereby customers' needs are mapped out and Aktia's whole service portfolio is presented. During the first three months of 2010, more than 10,000 Dialogues were carried out, which is expected to increase sales in 2010. Total savings by households was EUR 3,264 (2,930) million. Of these, household deposits were EUR 2,443 (2,374) million and savings in mutual funds stood at EUR 821 (556) million. Aktia's lending to private households, including the mortgages brokered by Aktia, increased by 1.4% from the year-end to EUR 3,710 (3,658) million. Mortgage loans brokered by Aktia amounted to EUR 1,406 (1,346) million. In addition, the savings and local cooperative banks brokered mortgages amounting to EUR 1,343 (1,290) million. Aktia's market share in housing loans was unchanged at 4.3% year-on-year at the end of March. Corporate banking's net interest income was EUR 2.4 (2.0) million and was 18% higher year-on-year. Net commission income from corporate banking was up 13.2% to EUR 0.7 (0.6) million. The income of the real estate agency business remained at last year's level of EUR 1.7 (1.7) million. Asset Management The operating profit of Aktia's asset management business, before allocation of common costs, increased to EUR 1.8 (0.1) million. Asset management's share of common costs was EUR 0.9 (0.4) million. The segment's contribution to Group operating profit amounted to EUR 0.9 (-0.4) million. Managed assets continued to develop favourably during January-March 2010. Aktia provides a wide and competitive range of services in the capital market for both private individuals and institutions. The Asset Management segment continues to focus on private banking operations and institutional investors this year. Operating income, i.e. income after reversals to the Group's other units and business partners, was EUR 5.0 (2.9) million. Operating expenses increased by 23.1% to EUR 4.1 (3.3) million, of which staff costs made up EUR 2.3 (1.9) million. This is due to greater investment of resources in the private banking business. The volume of funds managed and brokered by Aktia was EUR 4,096 (3,786) million. Aktia's market share was 7.0% (31.3.2009: 6.0%) at the end of the period - this includes the share of brokered funds. The total market is based on information from the Finnish Association of Mutual Funds. In March 2010, Morningstar awarded the mutual fund Aktia Capital the title of best Finnish mutual equity fund. Lipper awarded Aktia Secura as the best Nordic mixed fund during the last five years in the category Mixed Asset EUR Aggressive. The assets managed by Aktia Asset Management and Aktia Invest increased, thanks to an upswing in the markets, and totalled EUR 6,382 (5,996) million. Assets managed by Aktia Invest amounted to EUR 2,303 (2,140) million. The customer assets of Private Banking totalled EUR 960 (926) million. Life Insurance The life insurance business' operating profit before common costs was EUR 3.4 (2.5) million. The life insurance business' share of the common costs amounted to EUR 0.4 (0.4) million. The segment's contribution to the Group's operating profit amounted to EUR 2.9 (2.0) million. Premiums written during January-March was EUR 26.0 (20.5) million. A strategic line has been drawn so that all new sales are directed against the unit link. Risk insurance premiums written were in line with last year whereas premiums written in pension insurance decreased as expected while customers were awaiting new PS (new legislation regarding long-term pension savings) savings forms. Of the premium volume for savings and investment-linked insurance and pension insurance, unit-linked insurance accounted for 80%. Operating costs, including common costs, totalled EUR 3.3 (3.7) million. The expense ratio stood at 104.4% compared to 115.4% for the year before. The return on the company's investments based on market value was 2.6% (-2.3%). Technical provisions totalled EUR 827 (805) million, of which provisions for unit-linked insurance policies represented EUR 233 (210) million and interest-linked provisions EUR 593 (595) million. The company's solvency ratio improved and amounted to 16.0% compared to 14.4% at the end of 2009. Non-Life Insurance The non-life insurance business' operating profit before common costs was EUR 0.0 (-3.0) million. The non-life insurance business' share of common costs amounted to EUR 0.5 (0.4) million. The contribution of the non-life insurance business to the Group's operating profit for January-March was EUR -0.5 (-3.4) million. Premiums written for Aktia Non-Life Insurance rose by approximately 3% on the corresponding period last year. This increase is above the average growth in the market and is mostly attributable to private customers. Premiums written before the reinsurers' share were EUR 29.6 (28.8) million. Premiums earned for the period after the reinsurers' share and change in provisions for unearned premiums amounted to EUR 14.8 (13.9) million. Claims incurred amounted to a total of EUR 11.8 (11.7) million. Operating costs decreased to EUR 4.6 (5.3) million. The combined ratio in January-March 2010 was 111.5% compared to 122.4% the previous year. The lower combined ratio is largely explained both by lower frequency of loss and lower staff costs. Net income from investments amounted to EUR 2.3 (-0.4) million. The return on the company's investments based on market value was 2.6%. Of the non-life insurance business' total technical provisions of EUR 125 (110) million, provisions for outstanding claims stood at EUR 91 (89) million. The market value of the company's investment portfolio was EUR 143 (135) million and the company's risk carrying capacity was 74.0% compared to 72.4% at the end of 2009. The integration of Aktia Non-Life Insurance's distribution channels into Aktia's branch office network has continued to increase customer activity particularly in the private customer sector. Miscellaneous In January-March 2010 the operating profit of the Miscellaneous segment was EUR -2.2 (2.2) million. common costs In accordance with the new Group structure and “One Aktia” strategy the Group support functions have been unified and integrated. The integration process is continuing throughout 2010 and the largest expenses consist of marketing and IT as well as general support and staff functions. Capital adequacy and solvency The Bank Group's capital adequacy amounted to 16.2% compared to 15.9% at the end of 2009. The Tier 1 capital ratio was 9.6 (9.5)%. Capital adequacy was strengthened by the profit for the period and by higher valuations of financial assets. The Bank Group's capital adequacy is at a good level, exceeding both the targets set internally and the regulatory minimum requirements for capital adequacy. The life insurance company's solvency margin amounted to EUR 97 (86) million, where the minimum requirement is EUR 34.2 (34.0) million. Solvency ratio amounted to 16.0 (14.4)%. The non-life insurance company's solvency margin amounted to EUR 20.7 (18.4) million, where the minimum requirement is EUR 13.1 (13.1) million. Solvency capital was EUR 45.2 (43.6) million and a risk carrying capacity of 74.0 (72.4)% was reported. Capital adequacy for the conglomerate amounted to 162.4 (157.4)%. The statutory minimum stipulated in the Act on the Supervision of Financial and Insurance Conglomerates is 100%. Valuation of financial assets Value changes reported via income statement For shares and participations, a value impairment is reported in the income statement where the value change has been announced as significant or long-term and, in the case of interest-bearing securities, where the issuer has announced an inability to pay. For interest-bearing securities, previous write-downs are reversed in the income statement and for shares and participations in the fund at fair value. Write-downs during January-March 2010 were marginal, whereas these totalled EUR 9.7 million during the same period in 2009. Write-downs on financial assets -------------------------------------------------------------------------------- | EUR million | 1-3/2010 | 1-3/2009 | -------------------------------------------------------------------------------- | Interest-bearing securities | | | -------------------------------------------------------------------------------- | Banking Business | - | 0.4 | -------------------------------------------------------------------------------- | Life Insurance business | -0.5 | 4.3 | -------------------------------------------------------------------------------- | Non-life insurance business | - | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shares and participations | | | -------------------------------------------------------------------------------- | Banking Business | - | - | -------------------------------------------------------------------------------- | Life Insurance business | 0.3 | 4.9 | -------------------------------------------------------------------------------- | Non-life insurance business | - | - | -------------------------------------------------------------------------------- | Total | -0.2 | 9.7 | -------------------------------------------------------------------------------- Value changes reported via the fund at fair value A value impairment that is not reported in the income statement or an increase in the value of financial assets that has not been realised is reported via the fund at fair value. Taking cash flow hedging for the Group into consideration, the fund at fair value amounted to EUR 70.2 million after deferred tax compared to EUR 43.3 million as at 31 December 2009. Cash flow hedging which comprises the market value for interest rate derivative contracts which have been acquired for the purposes of hedging the banking business' net interest income amounted to EUR 30.6 (21.4) million. Specification of the fund at fair value -------------------------------------------------------------------------------- | EUR million | 31.3.2010 | 31.12.2009 | Change EURm | -------------------------------------------------------------------------------- | Shares and | | | | | participations | | | | -------------------------------------------------------------------------------- | Banking Business | 4.4 | 3.7 | 0.7 | -------------------------------------------------------------------------------- | Life insurance | -0.7 | 0.2 | -1.0 | | business | | | | -------------------------------------------------------------------------------- | Non-Life insurance | 0.1 | -0.2 | 0.3 | | business | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Direct | | | | | interest-bearing | | | | | securities | | | | -------------------------------------------------------------------------------- | Banking Business | 21.6 | 13.3 | 8.3 | -------------------------------------------------------------------------------- | Life insurance | 13.5 | 5.6 | 7.8 | | business | | | | -------------------------------------------------------------------------------- | Non-Life insurance | 0.6 | -0.8 | 1.5 | | business | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow hedging | 30.6 | 21.4 | 9.2 | -------------------------------------------------------------------------------- | Fund at fair value, | 70.2 | 43.3 | 26.8 | | total | | | | -------------------------------------------------------------------------------- Write-downs of loan and guarantee claims Write-downs based on individual examination amounted to EUR -4.8 (-1.7) million during January-March 2010. Recoveries and reversals of previous write-downs came to EUR 0.4 (0.1) million so that the cost effect on the profit for the period was EUR -4.4 (-1.6) million. During the period, the non-life insurance company made write-downs for outstanding premiums (credit losses) amounting to EUR 0.2 million. Most of the write-downs during the period are related to commitments whose credit rating had already decreased in 2009 and where restructuring efforts now are confirmed as without result. Of write-downs, EUR -4.5 million was accounted for by corporate loans, which corresponds to 0.6 (0.2)% of the total corporate lending. Write-downs of household loans amounted to EUR -0.3 (-0.1) million of which was accounted for by unsecured consumer loans. The review period's write-downs of household loans were marginal of total lending to households. Total write-downs amounted to 0.08 (0.03)% of total lending. In addition to individual write-downs, group write-downs were made for households and small companies, where there were objective reasons to believe there was uncertainty in relation to the repayment of claims in underlying credit portfolios. Group write-downs for households and small companies remained unchanged and amounted to EUR 7.4 (7.4) million at the end of the period. The Group's risk management Risk exposure The banking business includes Retail Banking and the financing companies, Corporate Banking, Treasury and Asset Management. Life insurance business is carried out by Aktia Life Insurance, and non-life insurance business by Aktia Non-Life Insurance. Lending-related risks within banking Credit stock maintained its good quality. Credit stock increased in January-March 2010 by EUR 116 million or 1.9%, totalling EUR 6,177 (6,061) million. As planned, this increase mainly occurred within household financing and households' share of total credit stock amounted to EUR 5,024 (4,924) million or 81.3% or 86.2% when combined with housing associations. Of these loans to households, 86.3 (86.2)% are secured against adequate real estate collateral in accordance with Basel 2. Housing credit stock totalled EUR 4,697 (4,598) million, of which mortgages granted by Aktia Real Estate Mortgage Bank plc made up EUR 2,602 (2,498) million. In all, housing loans increased by 2.1% against year-end 2009, and the growth derived mainly through Aktia Real Estate Mortgage Bank's lending where the average balance in relation to collateral market value fell somewhat to 56.7 (57.0)% compared to the corresponding period 2009. New lending to companies remained moderate and corporate loans totalled EUR 787 (782) million. The proportion of the total credit stock accounted for by corporate loans fell as planned to 12.7 (12.9)%. Lending to the public secured by collateral objects or unsecured within the framework of the financing companies Aktia Corporate Finance and Aktia Card & Finance totalled EUR 91.1 (84.8) million, representing 1.5% of total lending. Credit stock by sector -------------------------------------------------------------------------------- | EUR million | 31.3.2010 | 31.12.2009 | Change | Share, % | -------------------------------------------------------------------------------- | Corporate | 787 | 782 | 6 | 12.7 | -------------------------------------------------------------------------------- | Housing | 301 | 289 | 11 | 4.9 | | associations | | | | | -------------------------------------------------------------------------------- | Public sector | 10 | 10 | 0 | 0.2 | | entities | | | | | -------------------------------------------------------------------------------- | Non-profit | 55 | 55 | -1 | 0.9 | | organisations | | | | | -------------------------------------------------------------------------------- | Households | 5,024 | 4,924 | 100 | 81.3 | -------------------------------------------------------------------------------- | Total | 6,177 | 6,061 | 116 | 100.0 | -------------------------------------------------------------------------------- Loans with payments 1-30 days overdue fell during the year from 2.97% to 2.43% of credit stock, including off-balance sheet guarantee commitments. Loans with payments 31-89 days overdue increased from 0.76% to 0.99%, totalling EUR 62 million. Non-performing loans more than 90 days overdue, including claims on bankrupt companies and loans for collection, totalled EUR 35 million, corresponding to 0.57 (0.56)% of the entire credit stock plus bank guarantees. Undischarged debts by time overdue (EUR million) -------------------------------------------------------------------------------- | Days | 31.3.2010 | % of the | 31.12.2009 | % of the | | | | credit stock | | credit stock | -------------------------------------------------------------------------------- | 1-30 | 152 | 2.43 | 181 | 2.97 | -------------------------------------------------------------------------------- | of which | 108 | 1.73 | 114 | 1.86 | | households | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 31-89 | 62 | 0.99 | 46 | 0.76 | -------------------------------------------------------------------------------- | of which | 44 | 0.70 | 37 | 0.61 | | households | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 90- | 35 | 0.57 | 34 | 0.56 | -------------------------------------------------------------------------------- | of which | 19 | 0.30 | 18 | 0.30 | | households | | | | | -------------------------------------------------------------------------------- The Group's financing and liquidity risks The financing and liquidity risks are dealt with at corporate legal level, and there are no financing commitments from the Bank Group (Aktia Bank plc and its subsidiaries) to the insurance companies. In the banking business, financing and liquidity risks are defined as the availability of refinancing plus the differences in maturity between assets and liabilities. The objective in the Bank Group is to be able to cover one year's refinancing requirements using existing liquidity. The Bank Group's liquidity status has been stable despite continued financial uncertainty. Following the Aktia Real Estate Mortgage Bank's issue in March 2010, the liquidity buffer is at a level that meets refinancing requirements for more than two years refinancing needs. Within the life insurance business, liquidity risks are defined as the availability of financing for paying out claims, savings sums and surrenders, and pensions. The need for liquidity is satisfied mainly through the inward flow of cash and a portfolio of investment certificates which has been adapted in line with varying needs. Any unforeseen significant need for liquidity is taken care of through the liquid portfolio (primarily bonds). Within the non-life insurance business, liquidity risks are defined as the availability of financing for paying out claims and depend on the number of claims and their scale. Liquidity risks are managed through the inward flow of cash plus an adapted portfolio of bank deposits, investment certificates and government bonds. Counterparty risks Counterparty risks within Group treasury The banking business' liquidity portfolio, which comprises interest-bearing securities and is managed by Group Treasury, stood at EUR 2,683 (2,615) million as at 31 March 2010. Individual investment decisions are made in accordance with an investment plan in place and are based on careful assessment of the counterparty. Counter party risks are limited by the requirement for a high external rating (a minimum rating of A3 by Moody's Investor Service or equivalent), and limits are set for maximum exposure per counterparty and asset category. Of the financial assets available for sale, 58 (51)% were investments in covered bonds, 25 (36)% were investments in banks, 10 (9)% were investments in state-guaranteed financial senior bonds and approximately 7 (4)% were investments in public sector entities and companies. Counterparty risks in derivatives trading are managed through demands on collateral (CSA) limiting the open positions. Rating distribution for banking business -------------------------------------------------------------------------------- | | 31.3.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | EUR million | 2,683 | 2,615 | -------------------------------------------------------------------------------- | Aaa | 58.3% | 55.1 % | -------------------------------------------------------------------------------- | Aa1-Aa3 | 27.9% | 29.6 % | -------------------------------------------------------------------------------- | A1-A3 | 7.4% | 11.6 % | -------------------------------------------------------------------------------- | Baa1-Baa3 | 3.0% | 0.6 % | -------------------------------------------------------------------------------- | Ba1-Ba3 | 0.2% | 0.2 % | -------------------------------------------------------------------------------- | B1-B3 | 0.0% | 0.0 % | -------------------------------------------------------------------------------- | Caa1 or lower | 0.0% | 0.0 % | -------------------------------------------------------------------------------- | No rating | 3.2% | 2.9 %* | -------------------------------------------------------------------------------- | Total | 100.0 % | 100.0 % | -------------------------------------------------------------------------------- *) Of which 2.3% municipalities as at 31 March 2010. Of these financial assets, 3.2 (1.1)% did not meet the internal rating requirements. As a result of a reduced credit rating, three security assets with a total market value of EUR 15 million were no longer eligible for refinancing with the central bank. Other securities that are not eligible for refinancing and are unrated totalled EUR 89 million. During the period, no write-downs were realised as a result of the issuer announcing its inability to pay whereas the write-downs during the same period last year amounted to EUR -0.4 million. Counterparty risks in the life insurance business The life insurance company's direct interest rate investment increased as a result of continued reallocation with the aim of reducing the investment risks and neutralising interest rate risks in the technical provisions. Fixed income assets amounted to EUR 582 (570) million at the end of the quarter. Counterparty risks arising in connection with the life insurance company's investments are managed by the requirement for at least an “investment grade” external rating (rating class Baa3 from Moody's Investors Service or equivalent) and by rules concerning the maximal exposure for each counterparty and asset category. At the end of March 2010, 46 (47)% of direct interest rate investments were receivables from public sector entities, 20 (23)% were corporate bonds and 34 (30)% were receivables from banks and covered bonds. 1.5 (1.7)% of direct interest rate investments did not meet the internal rating requirements at the end of the period. The net change in value amongst interest-rate instruments earlier written down and booked was EUR 0.5 million. During the period, no write-downs were realised as a result of the issuer's credit rating being lowered. Rating distribution for life insurance business -------------------------------------------------------------------------------- | | 31.3.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | EUR million | 582 | 570 | -------------------------------------------------------------------------------- | Aaa | 54.1% | 52.5 % | -------------------------------------------------------------------------------- | Aa1-Aa3 | 13.5% | 12.2 % | -------------------------------------------------------------------------------- | A1-A3 | 15.6% | 18.3 % | -------------------------------------------------------------------------------- | Baa1-Baa3 | 11.6% | 11.4 % | -------------------------------------------------------------------------------- | Ba1-Ba3 | 0.9% | 1.4 % | -------------------------------------------------------------------------------- | B1-B3 | 0.2% | 0.0 % | -------------------------------------------------------------------------------- | Caa1 or lower | 0.4% | 0.3 % | -------------------------------------------------------------------------------- | No rating | 3.7% | 3.9 % | -------------------------------------------------------------------------------- | Total | 100.0 % | 100.0 % | -------------------------------------------------------------------------------- Counterparty risks in the non-life insurance business A conservative investment policy is observed in the non-life insurance business. The non-life insurance company's direct interest rate investments increased as a result of continued reallocation with the aim of reducing investment risks and totalled EUR 113 (104) million at the end of March 2010. At the end of the quarter, 60 (64)% of the direct interest rate investments were receivables from public sector entities, 11 (10)% were corporate bonds and 29 (36)% were receivables from banks and covered bonds. During the period no write-downs were realised. Rating distribution for non-life insurance business -------------------------------------------------------------------------------- | | 31.3.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | EUR million | 113 | 104 | -------------------------------------------------------------------------------- | Aaa | 59.7% | 58.4% | -------------------------------------------------------------------------------- | Aa1-Aa3 | 16.4% | 16.7% | -------------------------------------------------------------------------------- | A1-A3 | 12.8% | 12.5% | -------------------------------------------------------------------------------- | Baa1-Baa3 | 10.2% | 11.4% | -------------------------------------------------------------------------------- | Ba1-Ba3 | 0.5% | 0.5% | -------------------------------------------------------------------------------- | B1-B3 | 0.0% | 0.0% | -------------------------------------------------------------------------------- | Caa1 or lower | 0.0% | 0.0% | -------------------------------------------------------------------------------- | No rating | 0.4% | 0.4% | -------------------------------------------------------------------------------- | Total | 100.0% | 100.0% | -------------------------------------------------------------------------------- Market valuation of financial assets Aktia pursues no trading activities. Both the financial assets within the banking business and the investment assets within the life and non-life insurance businesses are invested in securities with access to market prices in an active market, and are valued in accordance with official quoted prices. Any significant or long-term impairment of market value compared to the acquisition price is shown in the income statement, while interest-rate fluctuations are reported under the fund at fair value after the deduction of deferred tax. Structural interest rate risk in the banking business Structural interest rate risk arises as a result of an imbalance between interest rate ties and the re-pricing of assets and liabilities, and affects net interest income. Hedging derivative instruments and investments within the liquidity portfolio are exploited to reduce the volatility in net interest income. According to the strategy for interest rate risk management, a parallel upward or downward shift in the interest rate curve of one percentage point shall not influence estimated net interest income of the banking business for the next 12 months by more than 7%, and 8% for the following year. At the end of the first quarter of 2010 the set targets were met. The growth in the deposit stock diminishes net interest income's sensitivity to an upward shift in the interest rate curve. Market value interest rate risk in the banking business Market value interest rate risk refers to changes in value of financial assets available for sale as a result of interest rate fluctuations or changes in credit, interest rate or spread risks. The size, maturity and risk level of the liquidity portfolio is restricted as a result of capital allocation limits and limits for entering into repurchase agreements. The net change in the fund at fair value relating to market value interest rate risk posted during the period and credit and spread risk was positive and totalled EUR 21.6 (13.3) million after the deduction of deferred tax. At the end of March 2010, the valuation difference in interest-bearing securities was positive at EUR 8.3 million. Other market risks in the banking business and parent company No equity trading or investments in real estate are carried out by the banking business or in the parent company. At the end of the period, remaining real estate assets totalled EUR 3.5 (3.4) million. Investments in shares which are necessary or strategic to the business totalled EUR 31.6 (30.6) million. At the end of the quarter, the fund at fair value related to the above strategic share investments amounted to EUR 4.4 (3.7) million after the deduction of deferred tax. Investment risks in the life insurance business The policyholder bears the investment risk of investments that provide cover for unit-linked insurance policies. These investments are valuated on an ongoing basis at fair value and any changes in value are posted to technical provisions for unit-linked insurance policies. The investment portfolio covering technical provisions is measured on an ongoing basis at market value. During the reporting period, write-downs affecting profit were posted which were attributable to shares and participations totalling EUR -0.3 (-4.9) million. The net change in the fund at fair value for shares after acquisition eliminations posted during the period totalled EUR -0.7 (0.2) million after the deduction of deferred tax. The change in value of the fund at fair value with regard to shares and participations is mainly related to indirect real estate investments. Allocation of holdings in the life insurance company's investment portfolio -------------------------------------------------------------------------------- | EUR million | 31.3.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | Shares | 0.0 | 0.0% | 0.3 | 0.0% | -------------------------------------------------------------------------------- | Bonds | 638.6 | 91.2% | 609.7 | 88.0% | -------------------------------------------------------------------------------- | Money market | 7.8 | 1.1% | 24.0 | 3.5% | -------------------------------------------------------------------------------- | Real estate | 36.7 | 5.2% | 38.0 | 5.5% | -------------------------------------------------------------------------------- | Other | 17.0 | 2.4% | 20.7 | 3.0% | -------------------------------------------------------------------------------- | Total | 700.1 | 100.0% | 692.6 | 100.0% | -------------------------------------------------------------------------------- Underwriting risks in the life insurance business Underwriting risks occur where future claim payments become higher than expected. Taking into account the provision of reinsurance cover, the insurance business has been relatively stable. The provision of reinsurance cover for different insurance portfolios reduces the volatility of financial results and eliminates risks that could affect the company's future business opportunities. Investment risks in the non-life insurance business The investment portfolio covering total technical provisions is measured on an ongoing basis at market value. The investment plan is to synchronise the investments and cash flow of technical provisions, which means a strong focus on the allocation of high-quality interest-bearing securities with short maturity. Currently the investment plan does not include equity investments. Allocation of holdings in the non-life insurance company's investment portfolio -------------------------------------------------------------------------------- | EUR million | 31.3.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | Shares | 0.0 | 0.0% | 0.0 | 0.0% | -------------------------------------------------------------------------------- | Bonds | 115.9 | 73.6% | 105.9 | 74.4% | -------------------------------------------------------------------------------- | Money market | 13.0 | 8.3% | 6.3 | 4.4% | -------------------------------------------------------------------------------- | Real estate | 26.6 | 16.9% | 28.2 | 19.8% | -------------------------------------------------------------------------------- | Other | 2.0 | 1.3% | 2.0 | 1.4% | -------------------------------------------------------------------------------- | Total | 157.5 | 100.0% | 142.4 | 100.0% | -------------------------------------------------------------------------------- Underwriting risks in the non-life insurance business Underwriting risks occur where future claim payments become higher than expected. Taking into account the provision of reinsurance cover, the insurance business has been relatively stable. The provision of reinsurance cover for different insurance portfolios reduces the volatility of financial results and eliminates risks that could affect the company's future business opportunities. Operational risks Operational risks refer to loss risks arising as a result of unclear or incomplete instructions, activities carried out contrary to instructions, unreliable information, deficient systems or actions taken by staff members. If an operational risk is realised, this can result in direct or indirect financial losses or tarnish the corporate image to the extent that the bank's credibility in the marketplace suffers. No events regarded as operational risks causing significant financial losses occurred in January-March 2010. Events concerning close relations Close relations refers to Aktia plc's key persons in management positions, close family members and companies that are under dominating influence of a key person in management position. The group's key persons refer to Aktia plc's Members of the Board of Supervisors and the Board of Directors and the Group's Executive Committee, Managing Director and Deputy Managing Director. No significant changes concerning close relations occurred during the period. Personnel Converted into full-time employees, the number of people employed by the Group decreased by 41 persons to 1,199 (31.3.2009: 1,240). The average number of full-time employees during the quarter was 1,202 (1,204). Personnel fund and management's incentive programme for 2010 Aktia Abp's Board of Directors has confirmed the following calculation method for the profit sharing provision to the personnel fund as of 2010. The profit sharing provision is based on 10% of the Group operating profit exceeding EUR 30 million. The profit sharing provision cannot exceed EUR 3 million. The CEO and other members of the Group's Executive Committee are also members of the Group's personnel fund. A bonus system has been set up for the CEO and the other members of the Group's Executive Committee which is based on the Group's financial results and annually defined targets at company and individual level. The individual bonus to the Executive Committee members cannot exceed the equivalent of three months' salary each year. For 2010, the Executive Committee is also included in a share-based incentive scheme that offers the members of the Executive Committee the opportunity to acquire a maximum of 55,833 shares. The outcome is dependent on separate targets, the performance conditions of which have been decided on by the Board of Directors. decisions taken at the annual general meeting The Annual General Meeting of Aktia plc held on 25 March 2010 adopted the financial statements of the parent company and the consolidated financial statements and discharged the members of the Board of Supervisors, the members of the Board of Directors, the Managing Director and his deputy from liability. In accordance with the proposal of the Board of Directors, the Annual General Meeting decided to distribute a dividend of EUR 0.24 per share totalling EUR 15.9 million for the financial period 1 January - 31 December 2009. The record date for the dividends was 30 March 2010 and the dividends were paid out on 8 April 2010. The Annual General Meeting established the number of members on the Board of Supervisors as thirty-four. The members of the Board of Supervisors Sten Eklundh, Agneta Eriksson, Peter Heinström, Erik Karls, Clas Nyberg, Gunvor Sarelin-Sjöblom, Jan-Erik Stenman, Maj-Britt Vääriskoski, Lars Wallin, Bo Gustav Wilson and Ann-Marie Åberg, who were all due to step down, were elected members of the Board of Supervisors for a term of three years. The Annual General Meeting established the number of auditors as one. PricewaterhouseCoopers Ab was re-appointed as auditor for the financial year starting on 1 January 2010, with Jan Holmberg, APA, as the auditor in charge. The Annual General Meeting approved the proposals of the Board of Director concerning authorisation to issue shares, as well as authorisation to divest shares. The Annual General Meeting also approved the proposal of the Board of Directors concerning donations for philanthropic purposes and the proposal regarding the appointment of a nomination committee with the task of preparing election matters for the Annual General Meeting. The proposal of the Finnish Shareholders Association to discontinue the Board of Supervisors was dropped as the author of the proposal did not demand a vote. All proposals mentioned above are included in the Summons to the AGM published on Aktia plc's website www.aktia.fi. aktia's executive committee Aktia's Executive Committee comprises CEO Jussi Laitinen, Deputy Managing Director Jarl Sved, Deputy Managing Director Stefan Björkman, Deputy Managing Director Robert Sergelius, Director Barbro Karhulahti, Director Taru Narvanmaa, Director Anders Nordman, Director Gösta Råholm and Director Olav Uppgård and Marit Leinonen, the staff representative. Changes in Group structure During autumn 2009, the merger of Aktia's real estate agency business took place. With effect from 1 January 2010, the business operates as Aktia Fastighetsförmedling Ab and Magnus Nyman, AFM Ab. At the end of March 2010, the paid-up share capital of Aktia plc as entered in the Finnish Trade Register was EUR 93,873,816, divided into 46,936,908 series A shares and 20,050,850 series R shares. Of the merger compensation related to the merger with Veritas Non-Life Insurance of 6,800,000 shares, a further 42,281 new series A shares were registered on book-entry accounts during the January -March period. The number of shareholders at the end of the period was 49,582. The inspection and registration of outstanding shares continues. The number of unregistered shares at the end of the period under review was 968,416. Aktia's holding of treasury shares amounted to 536,288 shares, corresponding to 0.8% of all shares. At the Extraordinary General Meeting of 21 December 2006, the Board of Directors was authorised to issue a maximum of 1,000,000 shares in order to create a share-based incentive scheme for key personnel in the Group. On 26 January 2010, the number of Aktia's shares owned by Life Annuity Institution Hereditas did rose above one tenth to 10.02%. Life Annuity Institution Hereditas' holding of voting rights in Aktia plc is 10.26%. -------------------------------------------------------------------------------- | Largest 20 | A | R | Shares | of | Votes | Of | Change | | owners | share | share | | shares | | votes | 1-3/20 | | Ownership per | s | s | | % | | % | 10 | | 31 March 2010 | | | | | | | | -------------------------------------------------------------------------------- | Helsinki | 7,604 | 3,802 | 11,406 | 17.03 | 83,645, | 18.67 | - | | Savings Bank | ,111 | ,048 | ,159 | | 071 | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Life Annuity | 4,428 | 2,077 | 6,505, | 9.71 | 45,970, | 10.26 | 209,00 | | Institution | ,114 | ,106 | 220 | | 234 | | 0 | | Hereditas* | | | | | | | | -------------------------------------------------------------------------------- | Pension | 4,297 | 2,134 | 6,431, | 9.60 | 46,985, | 10.49 | | | Insurance | ,469 | ,397 | 866 | | 409 | | | | Company | | | | | | | | | Veritas | | | | | | | | -------------------------------------------------------------------------------- | Espoo-Kauniain | 2,346 | 1,183 | 3,529, | 5.27 | 26,012, | 5.81 | | | en Savings | ,585 | ,292 | 877 | | 425 | | | | Bank | | | | | | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Oy Hammarén & | 1,890 | 945,0 | 2,835, | 4.23 | 20,790, | 4.64 | | | Co Ab | ,000 | 00 | 000 | | 000 | | | -------------------------------------------------------------------------------- | Svenska | 1,681 | 789,2 | 2,471, | 3.69 | 17,466, | 3.90 | | | Litteratursäll | ,786 | 29 | 015 | | 366 | | | | skapet i | | | | | | | | | Finland rf* | | | | | | | | -------------------------------------------------------------------------------- | Åbo Academy | 1,495 | 751,0 | 2,246, | 3.35 | 16,515, | 3.69 | | | Foundation* | ,640 | 00 | 640 | | 640 | | | -------------------------------------------------------------------------------- | Aktia | 1,514 | 833,0 | 2,347, | 3.50 | 18,175, | 4.06 | -172,0 | | foundation in | ,900 | 12 | 912 | | 140 | | 00 | | Vantaa | | | | | | | | -------------------------------------------------------------------------------- | Aktia | 1,303 | 651,5 | 1,954, | 2.92 | 14,333, | 3.20 | | | Foundation in | ,050 | 25 | 575 | | 550 | | | | Porvoo* | | | | | | | | -------------------------------------------------------------------------------- | Aktia | 978,5 | 547,2 | 1,525, | 2.28 | 11,923, | 2.66 | | | Foundation in | 25 | 62 | 787 | | 765 | | | | Vaasa* | | | | | | | | -------------------------------------------------------------------------------- | Kirkkonummi | 876,5 | 438,2 | 1,314, | 1.96 | 9,641,8 | 2.15 | | | Savings Bank | 29 | 64 | 793 | | 09 | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Karjaa-Pohja | 787,3 | 393,6 | 1,181, | 1.76 | 8,660,8 | 1.93 | | | Savings Bank | 50 | 75 | 025 | | 50 | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Föreningen | 670,0 | 377,9 | 1,047, | 1.56 | 8,229,0 | 1.84 | | | Konstsamfundet | 40 | 51 | 991 | | 60 | | | | rf* | | | | | | | | -------------------------------------------------------------------------------- | Inkoo Savings | 646,2 | 323,1 | 969,35 | 1.45 | 7,108,5 | 1.59 | | | Bank | 36 | 18 | 4 | | 96 | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Ab Kelonia Oy* | 549,4 | 308,6 | 858,07 | 1.28 | 6,722,6 | 1.50 | | | | 17 | 62 | 9 | | 57 | | | -------------------------------------------------------------------------------- | Sipoo Savings | 462,0 | 232,0 | 694,00 | 1.04 | 5,102,0 | 1.14 | | | Bank | 02 | 01 | 3 | | 22 | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Siuntio | 454,3 | 227,1 | 681,56 | 1.02 | 4,998,1 | 1.12 | | | Savings Bank | 77 | 88 | 5 | | 37 | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Aktia Plc | 357,5 | 178,7 | 536,28 | 0.80 | 3,932,7 | 0.88 | | | | 26 | 62 | 8 | | 66 | | | -------------------------------------------------------------------------------- | Malax Savings | 338,5 | 177,6 | 516,10 | 0.77 | 3,890,5 | 0.87 | | | Bank | 00 | 00 | 0 | | 00 | | | | Foundation* | | | | | | | | -------------------------------------------------------------------------------- | Savings Bank | 340,0 | 170,0 | 510,03 | 0.76 | 3,740,2 | 0.83 | | | foundation in | 21 | 10 | 1 | | 21 | | | | Tenhola* | | | | | | | | -------------------------------------------------------------------------------- | 20 largest | 33,02 | 16,57 | 49,600 | 74.0 | 364,584 | 81.4 | | | owners in | 2,178 | 8,102 | ,280 | | , 218 | | | | total | | | | | | | | -------------------------------------------------------------------------------- | Others | 13,91 | 3,472 | 17,387 | 26.0 | 83,369, | 18.6 | | | | 4,730 | ,748 | ,478 | | 690 | | | -------------------------------------------------------------------------------- | Total | 46,93 | 20,05 | 66,987 | 100.0 | 447,953 | 100.0 | | | | 6,908 | 0,850 | ,758 | | ,908 | | | -------------------------------------------------------------------------------- *) Part in shareholders' agreement concerning the parties' mutual pre-emptive right to R shares. This agreement covers 69% of R shares and 21% of the total number of shares. Shares Aktia's trading codes are AKTAV for A series shares and AKTRV for R series shares. Aktia shares are classified as belonging to the ‘Finance, regional banks' sector in keeping with the GICS index. As at 31 March 2010, the last day of trading, the closing price for an A series share was EUR 6.93 and for an R series share was EUR 7.97, indicating a market value of approx. EUR 490 million for Aktia. Since the beginning of 2010, the return on Aktia A series shares has been -10.8% and -14.3% for R shares. -------------------------------------------------------------------------------- | Share price development 1.1 - 31.3.2010 | Yield | -------------------------------------------------------------------------------- | Aktia A | -10.81 % | -------------------------------------------------------------------------------- | Aktia R | -14.30 % | -------------------------------------------------------------------------------- | OMX Nordic Banks | 4.27 % | -------------------------------------------------------------------------------- | OMX Nordic Financials | 7.14 % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share information | A share | R share | -------------------------------------------------------------------------------- | Votes /share | 1 | 20 | -------------------------------------------------------------------------------- | Market | NASDAQ OMX Helsinki | NASDAQ OMX Helsinki | -------------------------------------------------------------------------------- | Listed | 29.9.2009 | 29.9.2009 | -------------------------------------------------------------------------------- | ISIN | FI0009004733 | FI0009015911 | -------------------------------------------------------------------------------- | Code | AKTAV (OMX) | AKTRV (OMX) | -------------------------------------------------------------------------------- | List | OMXH Mid Caps | OMXH Mid Caps | -------------------------------------------------------------------------------- | Sector | Regional Banks | Regional Banks | -------------------------------------------------------------------------------- | Sector ID | 40101015 | 40101015 | -------------------------------------------------------------------------------- | Number of shares | 46,936,908 | 20,050,850 | -------------------------------------------------------------------------------- In January-March 2010, the average daily turnover of A shares was EUR 158,028 or 21,204 shares. The average daily turnover of R shares was EUR 19,076 or 2,215 shares. Aktia has entered into a market-making or LP (liquidity - providing) agreement with Handelsbanken in order to improve liquidity in A shares, which should encourage transactions by small shareholders. The agreement entered into force on 4 January 2010. Events after the end of the reporting period As planned, Aktia launched its new PS-savings products on 6 April 2010. At its first meeting after the Annual General Meeting of 2010, Aktia plc's Board of Supervisors on 20 April 2010 re-elected Henry Wiklund as Chair of the Board of Supervisors. Christina Gestrin, Patrik Lerche, Henrik Sundbäck, Lorenz Uthardt and Bo-Gustav Wilson were elected as Deputy Chairs. Johan Bardy, Anna Bertills, Gun Kapténs, Erik Karls, Gunvor Sarelin-Sjöblom, Bengt Sohlberg, Lars Wallin and Henry Wiklund were elected as members of the Board of Supervisors Controlling Committee. The Board of Supervisors' Chair and the Deputy Chairs are Presiding Officers tasked with drawing up matters to be dealt with by the Board of Supervisors, studying reports on decisions taken by the Board of Directors concerning overall strategy and studying reports concerning loans and guarantee commitments that have been extended to members of the Board of Directors. The Controlling Committee of the Board of Supervisors is tasked with closely monitoring the activities of the Board of Directors and executive management and with reporting its observations to the Board of Supervisors. The observations of the external and internal auditors are also reported to the Controlling Committee. The worries especially concerning the Southern European economies have lead to higher spreads and lower valuations for financial assets after the end of the period. Consequently, the fund at fair value that developed very positively during the first quarter, showing an increase of EUR 26.8 million, has declined by some EUR 13 million after the reporting period. Calendar 2010 -------------------------------------------------------------------------------- | Calendar 2010 | | -------------------------------------------------------------------------------- | Silent period | 22 July-12 August | -------------------------------------------------------------------------------- | Interim report April-June 2010 | 12 August | -------------------------------------------------------------------------------- | Capital Markets day | | -------------------------------------------------------------------------------- | Silent period | 14 October - 4 November | -------------------------------------------------------------------------------- | Interim report July-September 2010 | 4 November | -------------------------------------------------------------------------------- Outlook and risks for 2010 (unchanged) Aktia expects the Group's operating profit for 2010 to be at the same level as in 2009. In 2010, Aktia's focus will be on strengthening customer relations, increasing sales, developing Internet services, and managing costs, risks and capital in order to strengthen profitability. Aktia is endeavouring to grow above the market, particularly in the sectors of retail customers and small companies. 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. Changes in these factors can have an impact on demand for banking, insurance, real estate agency and asset management services. Change in interest rate level, yield curves and credit margins are hard to predict and can affect Aktia's interest rate margins and therefore profitability. Aktia pursuing effective management of interest rate risks. Any future write-downs of loans in Aktia's loan portfolio could be due to many factors, the most important of which are the general economic situation, interest rate level, the level of unemployment and changes in house prices. Aktia expects write-downs on credit to be lower in 2010 than in 2009. The availability of liquidity on the money markets is important for Aktia's refinancing activities. Like other banks, Aktia relies on deposits from households in order to service some of its liquidity needs. The market value of Aktia's financial and other assets can change as a result of, among other things, a requirement for higher returns among investors. The financial crisis has resulted in many new initiatives for regulating banking and insurance businesses, which has brought uncertainty concerning future capital requirements. A change in capital requirements could actualise both capitalisation needs and need for changes in Aktia Group's structure. Key figures -------------------------------------------------------------------------------- | EUR million | 1-3/20 | 1-3/20 | Change | 10-12 | 7-9 | 4-6 | | | 10 | 09 | | 2009 | 2009 | 2009 | -------------------------------------------------------------------------------- | Earnings per share | 0.18 | 0.09 | 100.0% | 0.10 | 0.21 | 0.12 | | (EPS), EUR | | | | | | | -------------------------------------------------------------------------------- | Equity per share | 6.86 | 4.83 | 42.0% | 6.52 | 6.51 | 5.51 | | (NAV), EUR1 | | | | | | | -------------------------------------------------------------------------------- | Return on equity | 10.5 | 6.8 | 53.6% | 5.9 | 13.2 | 8.0 | | (ROE), % | | | | | | | -------------------------------------------------------------------------------- | Total earnings per | 0.58 | 0.02 | - | 0.01 | 1.00 | 0.68 | | share, EUR | | | | | | | -------------------------------------------------------------------------------- | Capital adequacy | 162.4 | 132.6 | 22.4% | 157.4 | 155.2 | 143.1 | | ratio, % (finance- | | | | | | | | and insurance | | | | | | | | conglomerate)1 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of | 66.5 | 66.4 | 0.0% | 66.4 | 66.4 | 66.4 | | shares, million2 | | | | | | | -------------------------------------------------------------------------------- | Number of shares at | 66.5 | 66.4 | 0.0% | 66.5 | 66.5 | 66.5 | | the end of the | | | | | | | | period, million | | | | | | | -------------------------------------------------------------------------------- | Personnel (FTEs), | 1,202 | 1,204 | -0.2% | 1,213 | 1,212 | 1,213 | | average number of | | | | | | | | employees from the | | | | | | | | beginning of the | | | | | | | | financial year1 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Banking Business | | | | | | | | (incl. Private | | | | | | | | Banking) | | | | | | | -------------------------------------------------------------------------------- | Cost-to-income ratio | 0.57 | 0.72 | -20.8% | 0.57 | 0.51 | 0.52 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Borrowing from the | 3,180. | 3,087. | 3.0% | 3,029. | 3,082. | 3,079.9 | | public1 | 2 | 9 | | 2 | 0 | | -------------------------------------------------------------------------------- | Lending to the | 6,176. | 5,592. | 10.4% | 6,060. | 5,946. | 5,820.0 | | public1 | 5 | 5 | | 8 | 4 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital adequacy | 16.2 | 14.1 | 14.8% | 15.9 | 15.4 | 14.5 | | ratio, % 1 | | | | | | | -------------------------------------------------------------------------------- | Tier 1 capital ratio, | 9.6 | 9.0 | 6.8% | 9.5 | 9.1 | 9.1 | | % 1 | | | | | | | -------------------------------------------------------------------------------- | Risk-weighted | 3,527. | 3,335. | 5.7% | 3,460. | 3,493. | 3,394.8 | | commitments 1 | 2 | 5 | | 2 | 4 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Asset Management | | | | | | | -------------------------------------------------------------------------------- | Mutual fund volume1 | 4,096. | 2,415. | 69.6% | 3,786. | 3,488. | 2,927.4 | | | 1 | 2 | | 2 | 0 | | -------------------------------------------------------------------------------- | Managed and brokered | 6,382. | 4,515. | 41.4% | 5,995. | 5,680. | 5,082.9 | | assets1 | 3 | 0 | | 6 | 5 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life Insurance | | | | | | | -------------------------------------------------------------------------------- | Premiums written | 26.1 | 20.6 | 26.7% | 27.2 | 17.7 | 15.4 | | before reinsurers' | | | | | | | | share | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Expense ratio, %2 | 104.4 | 115.4 | -9.5% | 100.7 | 101.5 | 106.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Solvency margin1 | 97.0 | 40.0 | 142.5% | 86.3 | 85.0 | 65.6 | -------------------------------------------------------------------------------- | Solvency ratio, %2 | 16.0 | 7.1 | 125.4% | 14.4 | 14.2 | 11.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments at fair | 908.4 | 774.8 | 17.2% | 867.7 | 849.7 | 813.1 | | value1 | | | | | | | -------------------------------------------------------------------------------- | Technical provisions | 593.4 | 614.5 | -3.4% | 595.0 | 596.6 | 599.1 | | for interest-linked | | | | | | | | insurances1 | | | | | | | -------------------------------------------------------------------------------- | Technical provisions | 233.4 | 146.5 | 59.4% | 210.1 | 190.5 | 168.6 | | for unit-linked | | | | | | | | insurances1 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-Life Insurance | | | | | | | -------------------------------------------------------------------------------- | Premiums written | 29.6 | 28.8 | 2.9% | 12.0 | 10.3 | 15.2 | | before reinsurers' | | | | | | | | share | | | | | | | -------------------------------------------------------------------------------- | Premiums earned | 14.8 | 13.9 | 6.7% | 15.0 | 16.2 | 15.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Expense ratio, % 2 | 24.5 | 28.9 | -15.3% | 27.9 | 26.6 | 26.1 | -------------------------------------------------------------------------------- | Loss ratio, % 2 | 87.1 | 93.5 | -6.9% | 91.1 | 85.8 | 88.2 | -------------------------------------------------------------------------------- | Combined ratio, % 2 | 111.5 | 122.4 | -8.9% | 119.0 | 112.3 | 114.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Technical provisions | 134.0 | 126.1 | 6.3% | 119.3 | 121.1 | 127.6 | | before reinsurers' | | | | | | | | share1 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Solvency capital1 | 45.2 | 48.0 | -5.9% | 43.6 | 50.2 | 46.9 | -------------------------------------------------------------------------------- | Solvency ratio of | 38.1 | 43.7 | -1.4% | 41.8 | 47.7 | 42.6 | | technical provisions, | | | | | | | | %1 | | | | | | | -------------------------------------------------------------------------------- | Risk carrying | 74.0 | 80.8 | -8.4% | 72.4 | 83.6 | 78.9 | | capacity, %1 | | | | | | | -------------------------------------------------------------------------------- 1) At the end of the period, 2) Cumulative from the beginning of the year Basis of calculation for key figures -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | -------------------------------------------------------------------------------- | Profit for the period after taxes attributable to the shareholders of Aktia | | plc | -------------------------------------------------------------------------------- | Average number of shares during the reporting period (adjusted for new | | issue) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity per share (NAV), EUR | -------------------------------------------------------------------------------- | Equity attributable to the shareholders of Aktia plc | -------------------------------------------------------------------------------- | Number of shares at the en of the period. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on equity (ROE), % | -------------------------------------------------------------------------------- | Profit for the period (on annual basis) x 100 | -------------------------------------------------------------------------------- | Average equity | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital adequacy ratio, % (finance- and insurance conglomerate) | -------------------------------------------------------------------------------- | The total capital base of the conglomerate (equity including sector-specific | | assets and deductions) x 100 | -------------------------------------------------------------------------------- | Minimum requirement for the conglomerate's own assets (credit institution + | | insurance business) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The capital base of the conglomerate is regulated by section 3 of the act | | governing financial and insurance conglomerates and its related decree. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cost-to-income ratio (banking business) | -------------------------------------------------------------------------------- | Total operating expenses | -------------------------------------------------------------------------------- | Total operating income | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Risk-weighted commitments (banking business) | -------------------------------------------------------------------------------- | Total assets in the balance sheet and off-balance sheet items, including | | derivatives valued and risk-weighted in accordance with | | regulation 4.3 | | issued by the Finnish Financial Supervision Authority. | | The capital requirements for operational risks have been calculated and | | risk-weighted in accordance with regulation 4.3i issued by the Finnish | | Financial Supervision Authority. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital adequacy ratio, % (banking business) | -------------------------------------------------------------------------------- | Capital base (Tier 1 capital + Tier 2 capital) x 100 | -------------------------------------------------------------------------------- | Risk-weighted commitments | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The capital base is calculated in accordance with regulation 4.3a issued by | | the Finnish Financial Supervision Authority. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Tier 1 capital ratio, % (banking business) | -------------------------------------------------------------------------------- | Tier 1 capital x 100 | -------------------------------------------------------------------------------- | Risk-weighted commitments | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Expense ratio, % (life insurance business) | -------------------------------------------------------------------------------- | (Operating costs + cost of claims paid) x 100 | -------------------------------------------------------------------------------- | Total expense loadings | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total expense loadings are items which, according to actuarial calculations, | | should cover the costs. The operating costs do not include the re-insurers' | | commissions. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Solvency ratio, % (life insurance business) | -------------------------------------------------------------------------------- | Solvency capital | | x 100 | -------------------------------------------------------------------------------- | Technical provisions - equalisation provision - 75% of provisions for | | unit-linked insurance | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The technical provision is calculated after deduction of the re-insurers' | | share. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Combined ratio, % (non-life insurance business) | -------------------------------------------------------------------------------- | Loss ratio (excl. discounting of pension provisions) + expense ratio | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Loss ratio = Claims incurred and cost for claims handling x 100 | -------------------------------------------------------------------------------- | Premiums earned | -------------------------------------------------------------------------------- | Expense ratio = Operating costs excl. cost for claims handling x 100 | -------------------------------------------------------------------------------- | Premiums earned | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-life insurance key figures for loss ratio and expense ratio are | | calculated based on costs according to function. Thus they can not be | | calculated directly from the Group's/segment's income statement. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Solvency ratio of technical provisions, % (non-life insurance business) | -------------------------------------------------------------------------------- | Solvency capital x 100 | -------------------------------------------------------------------------------- | Technical provisions after reinsurers' share - equalisation provision | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Risk carrying capacity, % (non-life insurance business) | -------------------------------------------------------------------------------- | Solvency capital x 100 | -------------------------------------------------------------------------------- | Premiums earned from the latest 12 months | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The insurance businesses' key figures for solvency are calculated based on | | regulations issued by the Finnish Financial Supervisory | | Authority. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Aktia plc - consolidated financial statements January-March 2010 Consolidated income statement -------------------------------------------------------------------------------- | (EUR million) | 1-3/201 | 1-3/2009 | Change | 1-12/200 | | | 0 | | | 9 | -------------------------------------------------------------------------------- | Net interest income | 38.9 | 32.5 | 19.6% | 152.2 | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.1 | -76.6% | 0.6 | -------------------------------------------------------------------------------- | Commission income | 17.1 | 12.8 | 33.9% | 60.7 | -------------------------------------------------------------------------------- | Commission expenses | -3.7 | -3.2 | -14.2% | -14.3 | -------------------------------------------------------------------------------- | Net commission income | 13.4 | 9.5 | 40.7% | 46.3 | -------------------------------------------------------------------------------- | Net income from life-insurance | 4.5 | 5.4 | -16.1% | 14.0 | -------------------------------------------------------------------------------- | Net income from non-life | 4.4 | 2.0 | 123.7% | 15.2 | | insurance | | | | | -------------------------------------------------------------------------------- | Net income from financial | -1.8 | -2.6 | 28.7% | 0.8 | | transactions | | | | | -------------------------------------------------------------------------------- | Net income from investment | 0.3 | 0.1 | 122.3% | 0.4 | | properties | | | | | -------------------------------------------------------------------------------- | Other operating income | 1.3 | 0.8 | 65.9% | 3.6 | -------------------------------------------------------------------------------- | Total operating income | 61.0 | 47.8 | 27.6% | 233.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Staff costs | -20.7 | -20.3 | 2.2% | -79.2 | -------------------------------------------------------------------------------- | Other administrative expenses | -11.4 | -10.7 | 6.6% | -44.8 | -------------------------------------------------------------------------------- | Negative goodwill recorded as | - | 0.1 | - | 0.1 | | income | | | | | -------------------------------------------------------------------------------- | Depreciation of tangible and | -1.8 | -1.8 | -1.5% | -6.9 | | intangible assets | | | | | -------------------------------------------------------------------------------- | Other operating expenses | -5.0 | -5.4 | -7.5% | -23.4 | -------------------------------------------------------------------------------- | Total operating expenses | -38.9 | -38.0 | 2.3% | -154.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Impairment and reversal of | - | 0.0 | - | -0.6 | | impairment on tangible and | | | | | | intangible assets | | | | | -------------------------------------------------------------------------------- | Write-downs on credits and other | -4.6 | -1.6 | 183.2% | -31.7 | | commitments | | | | | -------------------------------------------------------------------------------- | Share of profit from associated | -0.1 | 0.0 | - | 0.3 | | companies | | | | | -------------------------------------------------------------------------------- | Operating profit | 17.5 | 8.2 | 113.6% | 47.0 | -------------------------------------------------------------------------------- | Taxes | -5.0 | -2.6 | 95.5% | -13.0 | -------------------------------------------------------------------------------- | Profit for the period | 12.5 | 5.6 | 121.9% | 34.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | | | -------------------------------------------------------------------------------- | Shareholders in Aktia plc | 11.8 | 5.9 | 100.1% | 34.3 | -------------------------------------------------------------------------------- | Minority interest | 0.7 | -0.3 | - | -0.3 | -------------------------------------------------------------------------------- | Total | 12.5 | 5.6 | 121.9% | 34.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | 0.18 | 0.09 | 100.0% | 0.52 | -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR, | 0.18 | 0.09 | 100.0% | 0.52 | | after dilution | | | | | -------------------------------------------------------------------------------- Consolidated statement of comprehensive income -------------------------------------------------------------------------------- | (EUR million) | 1-3/201 | 1-3//20 | Change | 1-12/20 | | | 0 | 09 | | 09 | -------------------------------------------------------------------------------- | Profit for the period | 12.5 | 5.6 | 121.9% | 34.0 | -------------------------------------------------------------------------------- | Other comprehensive income after | | | | | | taxes: | | | | | -------------------------------------------------------------------------------- | Change in valuation of fair value | 17.1 | -15.9 | - | 51.8 | | for financial assets available for | | | | | | sale | | | | | -------------------------------------------------------------------------------- | Change in valuation of fair value | 9.2 | 6.5 | 40.7% | 9.0 | | for cash flow hedging | | | | | -------------------------------------------------------------------------------- | Transferred to the income statement | 0.5 | 4.6 | -88.4% | 19.2 | | for financial assets available for | | | | | | sale | | | | | -------------------------------------------------------------------------------- | Transferred to the income statement | - | - | - | - | | for cash flow hedging | | | | | -------------------------------------------------------------------------------- | Total comprehensive income for the | 39.3 | 0.8 | - | 114.1 | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income | | | | | | attributable to: | | | | | -------------------------------------------------------------------------------- | Shareholders in Aktia plc | 38.6 | 1.2 | - | 114.0 | -------------------------------------------------------------------------------- | Minority interest | 0.7 | -0.4 | - | 0.2 | -------------------------------------------------------------------------------- | Total | 39.3 | 0.8 | - | 114.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total earnings per share, EUR | 0.58 | 0.02 | - | 1.72 | -------------------------------------------------------------------------------- | Total earnings per share, EUR, after | 0.58 | 0.02 | - | 1.72 | | dilution | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Consolidated balance sheet -------------------------------------------------------------------------------- | (EUR million) | 31.3.201 | 31.12.20 | Change | 31.3.2009 | | | 0 | 09 | | | -------------------------------------------------------------------------------- | Assets | | | | | -------------------------------------------------------------------------------- | Cash and balances with central | 327.9 | 341.0 | -3.8 % | 364.1 | | banks | | | | | -------------------------------------------------------------------------------- | Financial assets reported at | 20.7 | 22.5 | -7.9 % | 31.3 | | fair value via the income | | | | | | statement | | | | | -------------------------------------------------------------------------------- | Interest-bearing securities | 3,476.9 | 3,277.3 | 6.1 % | 2,912.5 | -------------------------------------------------------------------------------- | Shares and participations | 152.7 | 155.6 | -1.9 % | 217.9 | -------------------------------------------------------------------------------- | Financial assets available for | 3,629.6 | 3,433.0 | 5.7 % | 3,130.4 | | sale | | | | | -------------------------------------------------------------------------------- | Financial assets held until | 22.2 | 27.9 | -20.5 % | 35.9 | | maturity | | | | | -------------------------------------------------------------------------------- | Derivative instruments | 257.5 | 210.0 | 22.6 % | 205.7 | -------------------------------------------------------------------------------- | Lending to credit institutions | 318.7 | 80.7 | 294.9 % | 87.0 | -------------------------------------------------------------------------------- | Lending to the public and | 6,176.5 | 6,060.8 | 1.9 % | 5,592.5 | | public sector entities | | | | | -------------------------------------------------------------------------------- | Loans and other receivables | 6,495.3 | 6,141.6 | 5.8 % | 5,679.4 | -------------------------------------------------------------------------------- | Investments for unit-linked | 233.8 | 208.9 | 12.0 % | 145.8 | | provisions | | | | | -------------------------------------------------------------------------------- | Investments in associated | 4.2 | 4.5 | -7.4 % | 4.2 | | companies | | | | | -------------------------------------------------------------------------------- | Intangible assets | 11.9 | 12.4 | -4.1 % | 13.1 | -------------------------------------------------------------------------------- | Investment properties | 25.7 | 26.9 | -4.5 % | 28.9 | -------------------------------------------------------------------------------- | Other tangible assets | 7.4 | 8.1 | -8.5 % | 7.7 | -------------------------------------------------------------------------------- | Accrued income and advance | 83.0 | 80.3 | 3.5 % | 79.6 | | payments | | | | | -------------------------------------------------------------------------------- | Other assets | 59.0 | 31.4 | 88.0 % | 54.3 | -------------------------------------------------------------------------------- | Total other assets | 142.0 | 111.6 | 27.2 % | 133.9 | -------------------------------------------------------------------------------- | Income tax receivables | 1.4 | 0.8 | 76.6 % | 4.5 | -------------------------------------------------------------------------------- | Deferred tax receivables | 5.8 | 6.0 | -3.3 % | 22.4 | -------------------------------------------------------------------------------- | Tax receivables | 7.3 | 6.8 | 6.1 % | 26.8 | -------------------------------------------------------------------------------- | Assets classified as held for | 0.8 | 0.8 | 0.0 % | 0.8 | | sale | | | | | -------------------------------------------------------------------------------- | Total assets | 11,186.2 | 10,555.8 | 6.0 % | 9,808.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | | -------------------------------------------------------------------------------- | Liabilities to credit | 1,526.8 | 1,724.4 | -11.5 % | 1,734.7 | | institutions | | | | | -------------------------------------------------------------------------------- | Liabilities to the public and | 3,180.2 | 3,029.2 | 5.0 % | 3,087.9 | | public sector entities | | | | | -------------------------------------------------------------------------------- | Deposits | 4,707.0 | 4,753.6 | -1.0 % | 4,822.6 | -------------------------------------------------------------------------------- | Financial liabilities reported | - | - | - | 2.8 | | at fair value via the income | | | | | | statement | | | | | -------------------------------------------------------------------------------- | Derivative instruments | 154.4 | 132.2 | 16.8 % | 128.7 | -------------------------------------------------------------------------------- | Debt securities issued | 3,024.2 | 2,747.9 | 10.1 % | 2,308.4 | -------------------------------------------------------------------------------- | Subordinated liabilities | 253.8 | 252.5 | 0.5 % | 235.9 | -------------------------------------------------------------------------------- | Other liabilities to credit | 1,228.0 | 968.2 | 26.8 % | 472.3 | | institutions | | | | | -------------------------------------------------------------------------------- | Other liabilities to the public | 82.8 | 77.3 | 7.1 % | 358.6 | | and public sector entities | | | | | -------------------------------------------------------------------------------- | Other financial liabilities | 4,588.8 | 4,045.9 | 13.4 % | 3,375.2 | -------------------------------------------------------------------------------- | Provisions for interest-related | 593.4 | 595.0 | -0.3 % | 614.5 | | insurances | | | | | -------------------------------------------------------------------------------- | Technical provisions for | 233.4 | 210.1 | 11.1 % | 146.5 | | unit-linked insurances | | | | | -------------------------------------------------------------------------------- | Technical provisions for | 134.0 | 119.3 | 12.3 % | 126.1 | | non-life insurances | | | | | -------------------------------------------------------------------------------- | Technical provisions | 960.9 | 924.4 | 3.9 % | 887.0 | -------------------------------------------------------------------------------- | Accrued expenses and income | 80.9 | 71.9 | 12.4 % | 78.6 | | received in advance | | | | | -------------------------------------------------------------------------------- | Other liabilities | 121.9 | 91.5 | 33.3 % | 108.8 | -------------------------------------------------------------------------------- | Total other liabilities | 202.8 | 163.4 | 24.1 % | 187.4 | -------------------------------------------------------------------------------- | Provisions | 0.5 | 0.8 | -34.9 % | 1.0 | -------------------------------------------------------------------------------- | Income tax liability | 19.6 | 19.2 | 2.1 % | 5.9 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 63.2 | 49.9 | 26.6 % | 52.6 | -------------------------------------------------------------------------------- | Tax liabilities | 82.8 | 69.1 | 19.8 % | 58.5 | -------------------------------------------------------------------------------- | Liabilities for assets | 0.2 | 0.2 | 0.0 % | 0.2 | | classified as held for sale | | | | | -------------------------------------------------------------------------------- | Total liabilities | 10,697.4 | 10,089.7 | 6.0 % | 9,463.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | | -------------------------------------------------------------------------------- | Restricted equity | 174.5 | 147.6 | 18.2 % | 63.2 | -------------------------------------------------------------------------------- | Unrestricted equity | 281.6 | 285.8 | -1.5 % | 257.4 | -------------------------------------------------------------------------------- | Shareholders' share of equity | 456.1 | 433.4 | 5.2 % | 320.6 | -------------------------------------------------------------------------------- | Minority interest's share of | 32.7 | 32.7 | 0.0 % | 24.0 | | equity | | | | | -------------------------------------------------------------------------------- | Equity | 488.8 | 466.2 | 4.9 % | 344.6 | -------------------------------------------------------------------------------- | Total liabilities and equity | 11,186.2 | 10,555.8 | 6.0 % | 9,808.1 | -------------------------------------------------------------------------------- Consolidated cash flow statement -------------------------------------------------------------------------------- | (EUR million) | 1-3/2 | 1-3/200 | Change | 1-12/20 | | | 010 | 9 | | 09 | -------------------------------------------------------------------------------- | Cash flow from operating activities | | | | | -------------------------------------------------------------------------------- | Operating profit | 17.5 | 8.2 | 113.6 % | 47.0 | -------------------------------------------------------------------------------- | Adjustment items not included in cash | 2.6 | 15.7 | -83.5 % | 43.8 | | flow for the period | | | | | -------------------------------------------------------------------------------- | Paid income taxes | -1.0 | -2.9 | -65.1 % | -12.4 | -------------------------------------------------------------------------------- | Cash flow from operating activities | 19.1 | 21.0 | -9.2 % | 78.4 | | before change in operating receivables | | | | | | and liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Increase (-) or decrease (+) in | -576. | -204.5 | -181.9 | -919.1 | | receivables from operating activities | 3 | | % | | -------------------------------------------------------------------------------- | Increase (+) or decrease (-) in | 530.6 | 39.8 | - | 654.0 | | liabilities from operating activities | | | | | -------------------------------------------------------------------------------- | Total cash flow from operating | -26.6 | -143.6 | 81.5 % | -186.7 | | activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from investing activities | | | | | -------------------------------------------------------------------------------- | Financial assets held until maturity | 5.7 | - | - | 8.0 | -------------------------------------------------------------------------------- | Investments in group companies and | -0.1 | -24.5 | -99.8 % | 16.3 | | associated companies | | | | | -------------------------------------------------------------------------------- | Proceeds from sale of group companies | - | 0.0 | - | 0.0 | | and associated companies | | | | | -------------------------------------------------------------------------------- | Investment in tangible and intangible | -1.2 | -1.8 | -35.4 % | -6.7 | | assets | | | | | -------------------------------------------------------------------------------- | Disposal of tangible and intangible | 3.4 | 0.3 | - | 2.0 | | assets | | | | | -------------------------------------------------------------------------------- | Share issue of Aktia Real Estate | - | - | - | 8.9 | | Mortgage Bank Plc to the minority | | | | | -------------------------------------------------------------------------------- | Total cash flow from investing | 7.9 | -25.9 | - | 28.6 | | activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing activities | | | | | -------------------------------------------------------------------------------- | Subordinated liabilities | 1.3 | -11.3 | - | 6.4 | -------------------------------------------------------------------------------- | Increase in share capital | - | 13.6 | - | 0.0 | -------------------------------------------------------------------------------- | Increase in unrestricted equity | - | 27.2 | - | 0.0 | | reserve | | | | | -------------------------------------------------------------------------------- | Paid dividends | - | - | - | -10.0 | -------------------------------------------------------------------------------- | Total cash flow from financing | 1.3 | 29.5 | -95.7 % | -3.6 | | activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in cash and cash equivalents | -17.5 | -140.1 | 87.5 % | -161.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents at the | 350.7 | 512.4 | -31.6 % | 512.4 | | beginning of the year | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at the end | 333.2 | 372.3 | -10.5 % | 350.7 | | of the year | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents in the cash | | | | | | flow statement consist of the | | | | | | following items: | | | | | -------------------------------------------------------------------------------- | Cash in hand | 8.5 | 9.4 | -9.7 % | 10.0 | -------------------------------------------------------------------------------- | Insurance operation's cash and bank | 9.4 | 5.3 | 78.3 % | 4.5 | -------------------------------------------------------------------------------- | Bank of Finland current account | 310.1 | 349.5 | -11.3 % | 326.5 | -------------------------------------------------------------------------------- | Repayable on demand claims on credit | 5.2 | 8.1 | -35.4 % | 9.7 | | institutions | | | | | -------------------------------------------------------------------------------- | Total | 333.2 | 372.3 | -10.5 % | 350.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Adjustment items not included in cash | | | | | | flow consist of: | | | | | -------------------------------------------------------------------------------- | Impairment of financial assets | -0.2 | 9.7 | - | 24.0 | | available for sale | | | | | -------------------------------------------------------------------------------- | Write-downs on credits and other | 4.6 | 1.6 | 183.2 % | 31.7 | | commitments | | | | | -------------------------------------------------------------------------------- | Change in fair values | -2.0 | 1.9 | - | -19.2 | -------------------------------------------------------------------------------- | Depreciation and impairment of | 1.8 | 1.8 | -3.4 % | 7.7 | | intangible and tangible assets | | | | | -------------------------------------------------------------------------------- | Share of profit from associated | 0.4 | 0.3 | 40.2 % | 0.0 | | companies | | | | | -------------------------------------------------------------------------------- | Sales gains and losses from intangible | -1.6 | 0.1 | - | -0.5 | | and tangible assets | | | | | -------------------------------------------------------------------------------- | Negative goodwill recorded as income | - | -0.1 | - | -0.1 | -------------------------------------------------------------------------------- | Other adjustments | -0.3 | 0.5 | - | 0.2 | -------------------------------------------------------------------------------- | Total | 2.6 | 15.7 | -83.5 % | 43.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- consolidated statement of Changes in equity -------------------------------------------------------------------------------- | (EUR million) | Shar | Othe | Fun | Unr | Reta | Shar | Minority | Total | | | e | r | d | est | ined | ehol | interest | equit | | | capi | rest | at | ric | earn | ders | 's share | y | | | tal | rict | fai | ted | ings | ' | of | | | | | ed | r | equ | | shar | equity | | | | | equi | val | ity | | e of | | | | | | ty | ue | res | | equi | | | | | | | | erv | | ty | | | | | | | | e | | | | | -------------------------------------------------------------------------------- | Equity as at 1 | 80.2 | 10.4 | -36 | 45. | 192. | 291. | 25.0 | 316.8 | | January 2009 | | | .4 | 4 | 1 | 8 | | | -------------------------------------------------------------------------------- | Share issue | 13.6 | | | 27. | | 40.8 | | 40.8 | | | | | | 2 | | | | | -------------------------------------------------------------------------------- | Treasury shares | | | | | -3.2 | -3.2 | | -3.2 | | acquired in | | | | | | | | | | connection with | | | | | | | | | | the merger | | | | | | | | | -------------------------------------------------------------------------------- | Dividends to | | | | | -10. | -10. | | -10.0 | | shareholders | | | | | 0 | 0 | | | -------------------------------------------------------------------------------- | Profit for the | | | | | 5.9 | 5.9 | -0.3 | 5.6 | | period | | | | | | | | | -------------------------------------------------------------------------------- | Financial assets | | | -11 | | | -11. | -0.1 | -11.3 | | available for | | | .2 | | | 2 | | | | sale | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow hedging | | | 6.5 | | | 6.5 | | 6.5 | -------------------------------------------------------------------------------- | Total | | | -4. | | 5.9 | 1.2 | -0.4 | 0.8 | | comprehensive | | | 6 | | | | | | | income for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Other change in | | | | | | 0.0 | -0.5 | -0.5 | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Equity as at 31 | 93.8 | 10.4 | -41 | 72. | 184. | 320. | 24.0 | 344.6 | | March 2009 | | | .0 | 6 | 8 | 6 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as at | 93.9 | 10.4 | 43. | 72. | 213. | 433. | 32.7 | 466.2 | | 1January 2010 | | | 3 | 7 | 2 | 4 | | | -------------------------------------------------------------------------------- | Share issue | | | | | | 0.0 | | 0.0 | -------------------------------------------------------------------------------- | Treasury shares | | | | | | 0.0 | | 0.0 | | acquired in | | | | | | | | | | connection with | | | | | | | | | | the merger | | | | | | | | | -------------------------------------------------------------------------------- | Dividends to | | | | | -15. | -15. | | -15.9 | | shareholders | | | | | 9 | 9 | | | -------------------------------------------------------------------------------- | Profit for the | | | | | 11.8 | 11.8 | 0.7 | 12.5 | | period | | | | | | | | | -------------------------------------------------------------------------------- | Financial assets | | | 17. | | | 17.7 | 0.0 | 17.6 | | available for | | | 7 | | | | | | | sale | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow hedging | | | 9.2 | | | 9.2 | | 9.2 | -------------------------------------------------------------------------------- | Total | | | 26. | | 11.8 | 38.6 | 0.7 | 39.3 | | comprehensive | | | 8 | | | | | | | income for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Other change in | | | | | | 0.0 | -0.7 | -0.7 | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Equity as at 31 | 93.9 | 10.4 | 70. | 72. | 209. | 456. | 32.7 | 488.8 | | March 2010 | | | 2 | 7 | 0 | 1 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- In connection with the acquisition of Veritas Mutual Non-Life Insurance on 1 January 2009, merger compensation of 6,800,000 A shares was paid at a nominal value of EUR 2.00 per share and a subscription price of EUR 6.00 per share. Of this compensation, EUR 13.6 million was attributed to share capital and EUR 27.2 million to the unrestricted equity reserve. The company has continued its operations in the Aktia Group under the name Aktia Non-Life Insurance Ltd. As a result of the Extraordinary General Meeting of 21 December 2006, the Board of Directors is authorised to issue shares to key personnel in the Group for incentive reasons. On the basis of the authorisations given, the Board of Aktia plc resolved on 30 March 2009 to implement a directed share issue to designated persons in the company's executive management. Within the context of the issue, 12,490 new A shares were issued at a subscription price of EUR 6.00 per share and a nominal value of EUR 2.00 per share. Of the EUR 74,940 remuneration, EUR 24,980 was attributed to share capital and EUR 49,960 to the unrestricted equity reserve. -------------------------------------------------------------------------------- | Consolidated statement of changes in equity | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | | Other | Fund at | Unrestricte | | | | restricted | | d | -------------------------------------------------------------------------------- | (EUR million) | Share | equity | fair | equity | | | capital | | value | reserve | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as at 1January 2009 | 80.2 | 10.4 | -36.4 | 45.4 | -------------------------------------------------------------------------------- | Share issue | 13.6 | | | 27.2 | -------------------------------------------------------------------------------- | Treasury shares acquired in | | | | | connection with the merger | | | | -------------------------------------------------------------------------------- | Dividens to shareholders | | | | | -------------------------------------------------------------------------------- | Profit for the period | | | | | -------------------------------------------------------------------------------- | Financial assets available | | | -11.2 | | | for sale | | | | | -------------------------------------------------------------------------------- | Cash flow hedging | | | 6.5 | | -------------------------------------------------------------------------------- | Total comprehensive income | | | -4.6 | | | for the period | | | | | -------------------------------------------------------------------------------- | Other change in equity | | | | | -------------------------------------------------------------------------------- | Equity as at 31 Mars 2009 | 93.8 | 10.4 | -41.0 | 72.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Shareholder | Minority | | | | | s' | | | -------------------------------------------------------------------------------- | | Retaine | share of | interest' | Total | | | d | | s share | | -------------------------------------------------------------------------------- | (EUR million) | earning | equity | of equity | equity | | | s | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as at 1January 2009 | 192.1 | 291.8 | 25.0 | 316.8 | -------------------------------------------------------------------------------- | Share issue | | 40.8 | | 40.8 | -------------------------------------------------------------------------------- | Treasury shares acquired | -3.2 | -3.2 | | -3.2 | | in connection with the | | | | | | merger | | | | | -------------------------------------------------------------------------------- | Dividens to shareholders | -10.0 | -10.0 | | -10.0 | -------------------------------------------------------------------------------- | Profit for the period | 5.9 | 5.9 | -0.3 | 5.6 | -------------------------------------------------------------------------------- | Financial assets available | | -11.2 | -0.1 | -11.3 | | for sale | | | | | -------------------------------------------------------------------------------- | Cash flow hedging | | 6.5 | | 6.5 | -------------------------------------------------------------------------------- | Total comprehensive income | 5.9 | 1.2 | -0.4 | 0.8 | | for the period | | | | | -------------------------------------------------------------------------------- | Other change in equity | | 0.0 | -0.5 | -0.5 | -------------------------------------------------------------------------------- | Equity as at 31 Mars 2009 | 184.8 | 320.6 | 24.0 | 344.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | | Other | Fund at | Unrestricte | | | | restricted | | d | -------------------------------------------------------------------------------- | (EUR million) | Share | equity | fair | equity | | | capital | | value | reserve | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as at 1January 2010 | 93.9 | 10.4 | 43.3 | 72.7 | -------------------------------------------------------------------------------- | Share issue | | | | | -------------------------------------------------------------------------------- | Treasury shares acquired in | | | | | connection with the merger | | | | -------------------------------------------------------------------------------- | Dividens to shareholders | | | | | -------------------------------------------------------------------------------- | Profit for the period | | | | | -------------------------------------------------------------------------------- | Financial assets available | | | 17.7 | | | for sale | | | | | -------------------------------------------------------------------------------- | Cash flow hedging | | | 9.2 | | -------------------------------------------------------------------------------- | Total comprehensive income | | | 26.8 | | | for the period | | | | | -------------------------------------------------------------------------------- | Other change in equity | | | | | -------------------------------------------------------------------------------- | Equity as at 31 Mars 2010 | 93.9 | 10.4 | 70.2 | 72.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Shareholder | Minority | | | | | s' | | | -------------------------------------------------------------------------------- | | Retaine | share of | interest' | Total | | | d | | s share | | -------------------------------------------------------------------------------- | (EUR million) | earning | equity | of equity | equity | | | s | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as at 1January 2010 | 213.2 | 433.4 | 32.7 | 466.2 | -------------------------------------------------------------------------------- | Share issue | | 0.0 | | 0.0 | -------------------------------------------------------------------------------- | Treasury shares acquired in | 0.0 | | 0.0 | | connection with the merger | | | | -------------------------------------------------------------------------------- | Dividens to shareholders | -15.9 | -15.9 | | -15.9 | -------------------------------------------------------------------------------- | Profit for the period | 11.8 | 11.8 | 0.7 | 12.5 | -------------------------------------------------------------------------------- | Financial assets available | | 17.7 | 0.0 | 17.6 | | for sale | | | | | -------------------------------------------------------------------------------- | Cash flow hedging | | 9.2 | | 9.2 | -------------------------------------------------------------------------------- | Total comprehensive income | 11.8 | 38.6 | 0.7 | 39.3 | | for the period | | | | | -------------------------------------------------------------------------------- | Other change in equity | | 0.0 | -0.7 | -0.7 | -------------------------------------------------------------------------------- | Equity as at 31 Mars 2010 | 209.0 | 456.1 | 32.7 | 488.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | In the acquisition of Veritas Mutual Non-Life Insurance Company compensation | | for the merger was given in the form | -------------------------------------------------------------------------------- | of 6,800,000 A-shares with a nominal value of EUR 2.00 per share and a | | subscription price of EUR 6.00 per share. | -------------------------------------------------------------------------------- | Of the compensation for merger EUR 13.6 million was entered under share | | capital and EUR 27.2 million under | -------------------------------------------------------------------------------- | unrestricted equity reserve. The company continues to operate within the | | Aktia Group under the name | -------------------------------------------------------------------------------- | Aktia Non-Life Insurance | | | | | | Ltd. | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The Board of Directors has an authorisation from the extraordinary General | | Meeting on 21.12.2006 to issue new | -------------------------------------------------------------------------------- | shares as incentives for key personnel in the Group. On 30 March 2009, | | Aktia's Board of Directors decided, | -------------------------------------------------------------------------------- | supported by this authorisation to issue shares, on a directed share issue | | to named persons in the company's | -------------------------------------------------------------------------------- | senior executive management. Hereby 12,490 new A-shares were issued to a | | subscription price of EUR 6.00 | -------------------------------------------------------------------------------- | per share and a nominal value of EUR 2.00 per share. Of the EUR 74,940 | | compensation for merger EUR 24,980 | -------------------------------------------------------------------------------- | was entered under share capital and EUR 49,960 under | | | unrestricted equity reserve. | | -------------------------------------------------------------------------------- Quarterly trends in the Group -------------------------------------------------------------------------------- | (EUR million) | 1-3/201 | 10-12/20 | 7-9/2009 | 4-6/2009 | 1-3/2009 | | | 0 | 09 | | | | -------------------------------------------------------------------------------- | Net interest income | 38.9 | 39.8 | 40.5 | 39.4 | 32.5 | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.0 | 0.0 | 0.5 | 0.1 | -------------------------------------------------------------------------------- | Net commission income | 13.4 | 14.5 | 11.3 | 11.0 | 9.5 | -------------------------------------------------------------------------------- | Net income from | 4.5 | 3.2 | 3.8 | 1.7 | 5.4 | | life-insurance | | | | | | -------------------------------------------------------------------------------- | Net income from | 4.4 | 1.5 | 6.3 | 5.5 | 2.0 | | non-life insurance | | | | | | -------------------------------------------------------------------------------- | Net income from | -1.8 | -1.0 | 1.2 | 3.2 | -2.6 | | financial | | | | | | | transactions | | | | | | -------------------------------------------------------------------------------- | Net income from | 0.3 | 0.1 | 0.1 | 0.1 | 0.1 | | investment properties | | | | | | -------------------------------------------------------------------------------- | Other operating | 1.3 | 0.5 | 1.2 | 1.0 | 0.8 | | income | | | | | | -------------------------------------------------------------------------------- | Total operating | 61.0 | 58.7 | 64.3 | 62.4 | 47.8 | | income | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Staff costs | -20.7 | -21.8 | -18.3 | -18.9 | -20.3 | -------------------------------------------------------------------------------- | Other administrative | -11.4 | -12.9 | -9.5 | -11.6 | -10.7 | | expenses | | | | | | -------------------------------------------------------------------------------- | Negative goodwill | - | - | - | - | 0.1 | | recorded as income | | | | | | -------------------------------------------------------------------------------- | Depreciation of | -1.8 | -1.6 | -1.8 | -1.7 | -1.8 | | tangible and | | | | | | | intangible assets | | | | | | -------------------------------------------------------------------------------- | Other operating | -5.0 | -6.4 | -6.5 | -5.2 | -5.4 | | expenses | | | | | | -------------------------------------------------------------------------------- | Total operating | -38.9 | -42.7 | -36.1 | -37.4 | -38.0 | | expenses | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Impairment and | - | -0.3 | - | -0.2 | 0.0 | | reversal of | | | | | | | impairment on | | | | | | | tangible and | | | | | | | intangible assets | | | | | | -------------------------------------------------------------------------------- | Write-downs on | -4.6 | -5.5 | -8.5 | -16.2 | -1.6 | | credits and other | | | | | | | commitments | | | | | | -------------------------------------------------------------------------------- | Share of profit from | -0.1 | -0.4 | 0.1 | 0.5 | 0.0 | | associated companies | | | | | | -------------------------------------------------------------------------------- | Operating profit | 17.5 | 9.8 | 19.8 | 9.1 | 8.2 | -------------------------------------------------------------------------------- Notes to the interim report Note 1 Basis for preparing interim reports and important accounting principles Basis for preparing the interim report Aktia plc's consolidated financial statement is prepared in accordance with International Financial Reporting Standards (IFRS) as approved by the EU. The interim report for the period 1 January - 31 March 2010 has been prepared in accordance with IAS 34 ‘Interim Financial Reporting'. The interim financial report does not contain all the information and notes required for an annual report and should therefore be read together with the Group's annual report of 31 December 2009. The figures in this report are presented so that income statement items are compared with the corresponding period of the previous year, while the comparison of balance sheet items relates to 31 December 2009 unless specified otherwise. The interim report for the period 1 January - 31 March 2010 was approved by the Board of Directors on 7 May 2010. Balance sheet items in the Report by the Board of Directors are mainly given in EUR million without decimals. Aktia plc's financial statements and interim reports are available on Aktia's website www.aktia.fi. Important accounting principles In preparing this interim report the Group has followed the accounting principles applicable to the annual report of 31 December 2009. New accounting standards apply from 2010 IFRS 3 Business Combinations (revised) With effect from 1 January 2010, business combinations are reported in accordance with the revised standard IFRS 3. From 1 January 2010 onwards, company acquisitions will involve greater volatility in the consolidated income statement and in the Group's equity. The Group has not had any company acquisitions during the first quarter 2010. IAS 27 Consolidated and Separate Financial Statements (revised) This revised standard deals with accounting principles relating to minority interests. The application of this standard has not had any impact on the Group's result or financial position during the first quarter 2010. Note 2 Segment reporting Segment From 1 January 2009, the reported segments are Banking Business, Asset Management, Life Insurance, Non-Life Insurance and Miscellaneous. The Banking Business segment includes Aktia Bank plc's branch office operation, corporate banking and treasury as well as subsidiaries Aktia Real Estate Mortgage Bank plc, Aktia Card & Finance Ab, Aktia Corporate Finance Ab and the real estate agencies. Asset Management includes Aktia Bank plc's private bank in Helsinki and the subsidiaries Aktia Fund Management Ltd and Aktia Asset Management Oy Ab as well as business unit Aktia Invest. Life Insurance includes Aktia Life Insurance Ltd. Non-Life Insurance includes Aktia Non-Life Insurance Company Ltd. Miscellaneous includes Group management in Aktia plc and certain administrative functions in Aktia Bank plc that are not allocated to the various business areas. This business area also includes Vasp-Invest Ab. Allocation principles and group eliminations Net interest income from those units included in the banking business and asset management segments contain the margins on volumes of borrowing and lending. Reference interest rates for borrowing and lending and the interest rate risk that arises because of new pricing being out of step are transferred to Treasury in accordance with the Group's internal pricing. Treasury assumes responsibility for the Group's interest rate risk, liquidity and balance hedging measures for which management has issued authority. The costs of central support functions are allocated to the segments in accordance with resource use, defined projects and according to different allocation rules. Until further notice, Aktia plc and Aktia Bank plc are not allocating equity to the different segments. The miscellaneous segment consists of any items in the income statement and balance sheet that are not allocated to the various segments. Internal Group transactions between legal entities are eliminated and reported within each segments if the legal entities are in the same segment. Internal Group transactions between legal entities in different segments are included in the eliminations. The share of profits in associated companies, acquisition eliminations, the minority interest's share and other Group adjustments are included in eliminations. Pricing between the segments is based on market prices. -------------------------------------------------------------------------------- | Note 2. Group's segment | | | | | reporting | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Income statement | | Banking | | Asset | | | | Business | | Management | | | | | | | -------------------------------------------------------------------------------- | (EUR million) | 1-12/200 | 1-12/2008 | 1-12/2009 | 1-12/2008 | | | 9 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Net interest income | 38.0 | 30.8 | 0.7 | 0.4 | -------------------------------------------------------------------------------- | Dividends | 1.4 | 0.0 | - | 0.0 | -------------------------------------------------------------------------------- | Net commission income | 9.9 | 7.0 | 4.2 | 2.7 | -------------------------------------------------------------------------------- | Net income from | - | - | - | - | | life-insurance | | | | | -------------------------------------------------------------------------------- | Net income from non-life | - | - | - | - | | insurance | | | | | -------------------------------------------------------------------------------- | Net income from | -3.1 | -2.3 | 0.0 | -0.2 | | financial transactions | | | | | -------------------------------------------------------------------------------- | Net income from | 0.0 | 0.0 | - | - | | investment properties | | | | | -------------------------------------------------------------------------------- | Other operating income | 0.8 | 0.6 | 0.1 | 0.0 | -------------------------------------------------------------------------------- | Total operating income | 47.0 | 36.1 | 5.0 | 2.9 | -------------------------------------------------------------------------------- | Staff costs | -9.9 | -8.8 | -2.3 | -1.9 | -------------------------------------------------------------------------------- | Other administrative | -12.2 | -12.6 | -1.5 | -1.0 | | expenses | | | | | -------------------------------------------------------------------------------- | Negative goodwill | - | - | - | - | | recorded as income | | | | | -------------------------------------------------------------------------------- | Depreciation of tangible | | | | | | and | | | | | -------------------------------------------------------------------------------- | intangible assets | -0.6 | -0.6 | -0.1 | -0.2 | -------------------------------------------------------------------------------- | Other operating expenses | -2.4 | -2.5 | -0.2 | -0.2 | -------------------------------------------------------------------------------- | Total operating expenses | -25.1 | -24.4 | -4.1 | -3.3 | -------------------------------------------------------------------------------- | Impairment and reversing | | | | | | items | | | | | -------------------------------------------------------------------------------- | of tangible and | | | | | | intangible | | | | | -------------------------------------------------------------------------------- | assets | - | - | - | - | -------------------------------------------------------------------------------- | Write-downs on credits | | | | | | and other | | | | | -------------------------------------------------------------------------------- | commitments | -4.4 | -1.6 | - | - | -------------------------------------------------------------------------------- | Share of profit from | - | - | - | - | | associated companies | | | | | -------------------------------------------------------------------------------- | Operating profit | 17.4 | 10.0 | 0.9 | -0.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income statement | | Life | | Non-Life | | | | Insurance | | Insurance | | | | | | | -------------------------------------------------------------------------------- | (EUR million) | 1-12/200 | 1-12/2008 | 1-12/2009 | 1-12/2008 | | | 9 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Net interest income | - | - | - | - | -------------------------------------------------------------------------------- | Dividends | - | - | - | - | -------------------------------------------------------------------------------- | Net commission income | - | - | - | - | -------------------------------------------------------------------------------- | Net income from | 6.3 | 8.3 | - | - | | life-insurance | | | | | -------------------------------------------------------------------------------- | Net income from non-life | - | - | 5.3 | 1.8 | | insurance | | | | | -------------------------------------------------------------------------------- | Net income from | - | - | - | - | | financial transactions | | | | | -------------------------------------------------------------------------------- | Net income from | - | - | - | - | | investment properties | | | | | -------------------------------------------------------------------------------- | Other operating income | - | - | 0.2 | 0.1 | -------------------------------------------------------------------------------- | Total operating income | 6.3 | 8.3 | 5.5 | 1.9 | -------------------------------------------------------------------------------- | Staff costs | -1.3 | -1.7 | -2.8 | -3.7 | -------------------------------------------------------------------------------- | Other administrative | -1.9 | -1.8 | -1.5 | -1.4 | | expenses | | | | | -------------------------------------------------------------------------------- | Negative goodwill | - | - | - | - | | recorded as income | | | | | -------------------------------------------------------------------------------- | Depreciation of tangible | | | | | | and | | | | | -------------------------------------------------------------------------------- | intangible assets | -0.1 | -0.1 | -0.1 | -0.1 | -------------------------------------------------------------------------------- | Other operating expenses | - | - | -0.2 | 0.0 | -------------------------------------------------------------------------------- | Total operating expenses | -3.3 | -3.7 | -4.6 | -5.3 | -------------------------------------------------------------------------------- | Impairment and reversing | | | | | | items | | | | | -------------------------------------------------------------------------------- | of tangible and | | | | | | intangible | | | | | -------------------------------------------------------------------------------- | assets | - | - | - | - | -------------------------------------------------------------------------------- | Write-downs on credits | | | | | | and other | | | | | -------------------------------------------------------------------------------- | commitments | - | - | -0.2 | - | -------------------------------------------------------------------------------- | Share of profit from | - | - | - | - | | associated companies | | | | | -------------------------------------------------------------------------------- | Operating profit | 3.0 | 4.6 | 0.7 | -3.4 | -------------------------------------------------------------------------------- | Contribution of | 2.9 | 2.0 | -0.5 | -3.4 | | insurance businesses to | | | | | | the Groups' operating | | | | | | profit | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income statement | | Miscellaneou | | Elimination | | | | s | | s | -------------------------------------------------------------------------------- | (EUR million) | 1-12/200 | 1-12/2008 | 1-12/2009 | 1-12/2008 | | | 9 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Net interest income | -0.3 | 1.1 | 0.4 | 0.2 | -------------------------------------------------------------------------------- | Dividends | - | 1.3 | -1.4 | -1.3 | -------------------------------------------------------------------------------- | Net commission income | 1.7 | 1.1 | -2.4 | -1.3 | -------------------------------------------------------------------------------- | Net income from | - | - | -1.8 | -2.9 | | life-insurance | | | | | -------------------------------------------------------------------------------- | Net income from non-life | - | - | -1.0 | 0.2 | | insurance | | | | | -------------------------------------------------------------------------------- | Net income from | - | - | 1.3 | - | | financial transactions | | | | | -------------------------------------------------------------------------------- | Net income from | 0.2 | 0.2 | 0.1 | 0.0 | | investment properties | | | | | -------------------------------------------------------------------------------- | Other operating income | 4.1 | 0.4 | -3.7 | -0.4 | -------------------------------------------------------------------------------- | Total operating income | 5.6 | 4.1 | -8.4 | -5.5 | -------------------------------------------------------------------------------- | Staff costs | -4.4 | -4.0 | -0.1 | 0.0 | -------------------------------------------------------------------------------- | Other administrative | -0.4 | 4.7 | 6.1 | 1.5 | | expenses | | | | | -------------------------------------------------------------------------------- | Negative goodwill | - | - | - | 0.1 | | recorded as income | | | | | -------------------------------------------------------------------------------- | Depreciation of tangible | | | | | | and | | | | | -------------------------------------------------------------------------------- | intangible assets | -0.7 | -0.4 | -0.2 | -0.3 | -------------------------------------------------------------------------------- | Other operating expenses | -2.2 | -2.1 | 0.0 | -0.7 | -------------------------------------------------------------------------------- | Total operating expenses | -7.6 | -1.9 | 5.9 | 0.6 | -------------------------------------------------------------------------------- | Impairment and reversing | | | | | | items | | | | | -------------------------------------------------------------------------------- | of tangible and | | | | | | intangible | | | | | -------------------------------------------------------------------------------- | assets | - | - | - | 0.0 | -------------------------------------------------------------------------------- | Write-downs on credits | | | | | | and other | | | | | -------------------------------------------------------------------------------- | commitments | - | - | - | - | -------------------------------------------------------------------------------- | Share of profit from | - | - | -0.1 | 0.0 | | associated companies | | | | | -------------------------------------------------------------------------------- | Operating profit | -2.0 | 2.2 | -2.6 | -4.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income statement | | Total Group | | | | | | | | | -------------------------------------------------------------------------------- | (EUR million) | 1-12/200 | 1-12/2008 | | | | | 9 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Net interest income | 38.9 | 32.5 | | | -------------------------------------------------------------------------------- | Dividends | 0.0 | 0.1 | | | -------------------------------------------------------------------------------- | Net commission income | 13.4 | 9.5 | | | -------------------------------------------------------------------------------- | Net income from | 4.5 | 5.4 | | | | life-insurance | | | | | -------------------------------------------------------------------------------- | Net income from non-life | 4.4 | 2.0 | | | | insurance | | | | | -------------------------------------------------------------------------------- | Net income from | -1.8 | -2.6 | | | | financial transactions | | | | | -------------------------------------------------------------------------------- | Net income from | 0.3 | 0.1 | | | | investment properties | | | | | -------------------------------------------------------------------------------- | Other operating income | 1.3 | 0.8 | | | -------------------------------------------------------------------------------- | Total operating income | 61.0 | 47.8 | | | -------------------------------------------------------------------------------- | Staff costs | -20.7 | -20.3 | | | -------------------------------------------------------------------------------- | Other administrative | -11.4 | -10.7 | | | | expenses | | | | | -------------------------------------------------------------------------------- | Negative goodwill | - | 0.1 | | | | recorded as income | | | | | -------------------------------------------------------------------------------- | Depreciation of tangible | | | | | | and | | | | | -------------------------------------------------------------------------------- | intangible assets | -1.8 | -1.8 | | | -------------------------------------------------------------------------------- | Other operating expenses | -5.0 | -5.4 | | | -------------------------------------------------------------------------------- | Total operating expenses | -38.9 | -38.0 | | | -------------------------------------------------------------------------------- | Impairment and reversing | | | | | | items | | | | | -------------------------------------------------------------------------------- | of tangible and | | | | | | intangible | | | | | -------------------------------------------------------------------------------- | assets | - | 0.0 | | | -------------------------------------------------------------------------------- | Write-downs on credits | | | | | | and other | | | | | -------------------------------------------------------------------------------- | commitments | -4.6 | -1.6 | | | -------------------------------------------------------------------------------- | Share of profit from | -0.1 | 0.0 | | | | associated companies | | | | | -------------------------------------------------------------------------------- | Operating profit | 17.5 | 8.2 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance sheet | | Banking | | Asset | | | | Business | | Management | | | | | | | -------------------------------------------------------------------------------- | (EUR million) | 31.3.201 | 31.12.2009 | 31.3.2010 | 31.12.2009 | | | 0 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash and balances with | 318.4 | 336.4 | 0.1 | 0.1 | | central banks | | | | | -------------------------------------------------------------------------------- | Financial assets | | | | | | reported at fair value | | | | | -------------------------------------------------------------------------------- | through profit and loss | 3.7 | 3.6 | - | - | -------------------------------------------------------------------------------- | Financial assets | 2 826.0 | 2 655.8 | 7.6 | 7.3 | | available for sale | | | | | -------------------------------------------------------------------------------- | Loans and other | 6 520.5 | 6 173.7 | 38.4 | 34.4 | | receivables | | | | | -------------------------------------------------------------------------------- | Investments for | - | - | - | - | | unit-linked provisions | | | | | -------------------------------------------------------------------------------- | Other assets | 428.6 | 662.9 | 4.9 | 5.0 | -------------------------------------------------------------------------------- | Total assets | 10 097.2 | 9 832.4 | 51.0 | 46.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Deposits | 4 573.1 | 4 607.1 | 154.0 | 154.7 | -------------------------------------------------------------------------------- | Debt securities issued | 3 040.7 | 2 758.1 | - | - | -------------------------------------------------------------------------------- | Technical provision for | - | - | - | - | | insurance business | | | | | -------------------------------------------------------------------------------- | Other liabilities | 1 996.5 | 1 508.7 | 5.3 | 6.7 | -------------------------------------------------------------------------------- | Total liabilities | 9 610.3 | 8 874.0 | 159.4 | 161.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance sheet | | Life | | Non-Life | | | | Insurance | | Insurance | | | | | | | -------------------------------------------------------------------------------- | (EUR million) | 31.3.201 | 31.12.2009 | 31.3.2010 | 31.12.2009 | | | 0 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash and balances with | 4.0 | 3.1 | 13.0 | 5.6 | | central banks | | | | | -------------------------------------------------------------------------------- | Financial assets | | | | | | reported at fair value | | | | | -------------------------------------------------------------------------------- | through profit and loss | 10.5 | 10.4 | 6.5 | 8.4 | -------------------------------------------------------------------------------- | Financial assets | 672.3 | 664.9 | 113.4 | 101.1 | | available for sale | | | | | -------------------------------------------------------------------------------- | Loans and other | - | - | - | - | | receivables | | | | | -------------------------------------------------------------------------------- | Investments for | 233.8 | 208.9 | - | - | | unit-linked provisions | | | | | -------------------------------------------------------------------------------- | Other assets | 20.3 | 19.4 | 44.3 | 38.5 | -------------------------------------------------------------------------------- | Total assets | 941.0 | 906.6 | 177.3 | 153.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Deposits | - | - | - | - | -------------------------------------------------------------------------------- | Debt securities issued | - | - | - | - | -------------------------------------------------------------------------------- | Technical provision for | 826.8 | 805.1 | 125.1 | 109.7 | | insurance business | | | | | -------------------------------------------------------------------------------- | Other liabilities | 17.7 | 14.1 | 25.8 | 19.6 | -------------------------------------------------------------------------------- | Total liabilities | 844.5 | 819.2 | 150.9 | 129.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance sheet | | Miscellaneou | | Elimination | | | | s | | s | -------------------------------------------------------------------------------- | (EUR million) | 31.3.201 | 31.12.2009 | 31.3.2010 | 31.12.2009 | | | 0 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash and balances with | - | - | -7.6 | -4.3 | | central banks | | | | | -------------------------------------------------------------------------------- | Financial assets | | | | | | reported at fair value | | | | | -------------------------------------------------------------------------------- | through profit and loss | - | - | - | - | -------------------------------------------------------------------------------- | Financial assets | 28.1 | 30.0 | -17.8 | -26.1 | | available for sale | | | | | -------------------------------------------------------------------------------- | Loans and other | 9.3 | 0.1 | -72.9 | -66.6 | | receivables | | | | | -------------------------------------------------------------------------------- | Investments for | - | - | - | - | | unit-linked provisions | | | | | -------------------------------------------------------------------------------- | Other assets | 320.9 | 20.7 | -340.1 | -337.3 | -------------------------------------------------------------------------------- | Total assets | 358.2 | 50.7 | -438.4 | -434.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Deposits | 0.1 | 2.2 | -20.2 | -10.4 | -------------------------------------------------------------------------------- | Debt securities issued | - | - | -16.4 | -10.2 | -------------------------------------------------------------------------------- | Technical provision for | - | - | 9.0 | 9.6 | | insurance business | | | | | -------------------------------------------------------------------------------- | Other liabilities | 94.5 | 258.8 | -134.6 | -144.3 | -------------------------------------------------------------------------------- | Total liabilities | 94.6 | 261.0 | -162.2 | -155.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance sheet | | Total Group | | | | | | | | | -------------------------------------------------------------------------------- | (EUR million) | 31.3.201 | 31.12.2009 | | | | | 0 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash and balances with | 327.9 | 341.0 | | | | central banks | | | | | -------------------------------------------------------------------------------- | Financial assets | | | | | | reported at fair value | | | | | -------------------------------------------------------------------------------- | through profit and loss | 20.7 | 22.5 | | | -------------------------------------------------------------------------------- | Financial assets | 3 629.6 | 3 433.0 | | | | available for sale | | | | | -------------------------------------------------------------------------------- | Loans and other | 6 495.3 | 6 141.6 | | | | receivables | | | | | -------------------------------------------------------------------------------- | Investments for | 233.8 | 208.9 | | | | unit-linked provisions | | | | | -------------------------------------------------------------------------------- | Other assets | 478.9 | 409.0 | | | -------------------------------------------------------------------------------- | Total assets | 11 186.2 | 10 555.8 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Deposits | 4 707.0 | 4 753.6 | | | -------------------------------------------------------------------------------- | Debt securities issued | 3 024.2 | 2 747.9 | | | -------------------------------------------------------------------------------- | Technical provision for | 960.9 | 924.4 | | | | insurance business | | | | | -------------------------------------------------------------------------------- | Other liabilities | 2 005.3 | 1 663.7 | | | -------------------------------------------------------------------------------- | Total liabilities | 10 697.4 | 10 089.7 | | | -------------------------------------------------------------------------------- Note 3 Derivatives and off-balance sheet commitments -------------------------------------------------------------------------------- | Hedging derivative instruments (EUR | | | | | million) | | | | -------------------------------------------------------------------------------- | 31.3.2010 | Total | Assets, | Liabiliti | | | nominal | fair | es, fair | | | amount | value | value | -------------------------------------------------------------------------------- | Fair value hedging | | | | -------------------------------------------------------------------------------- | Interest rate-related | 2,927.5 | 81.6 | 32.1 | -------------------------------------------------------------------------------- | Total | 2,927.5 | 81.6 | 32.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow hedging | | | | -------------------------------------------------------------------------------- | Interest rate-related | 960.0 | 51.3 | 0.4 | -------------------------------------------------------------------------------- | Total | 960.0 | 51.3 | 0.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Derivative instruments valued through | | | | | profit and loss | | | | -------------------------------------------------------------------------------- | Interest rate-related *) | 7,031.0 | 121.7 | 119.2 | -------------------------------------------------------------------------------- | Currency-related | 195.9 | 1.5 | 1.5 | -------------------------------------------------------------------------------- | Equity-related **) | 112.8 | 1.0 | 1.0 | -------------------------------------------------------------------------------- | Other derivative instruments **) | 8.4 | 0.4 | 0.4 | -------------------------------------------------------------------------------- | Total | 7,348.2 | 124.6 | 122.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total derivative instruments | | | | -------------------------------------------------------------------------------- | Interest rate-related | 10,918.5 | 254.5 | 151.6 | -------------------------------------------------------------------------------- | Currency-related | 195.9 | 1.5 | 1.5 | -------------------------------------------------------------------------------- | Equity-related | 112.8 | 1.0 | 1.0 | -------------------------------------------------------------------------------- | Other derivative instruments | 8.4 | 0.4 | 0.4 | -------------------------------------------------------------------------------- | Total | 11,235.7 | 257.5 | 154.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Hedging derivative instruments (EUR | | | | | million) | | | | -------------------------------------------------------------------------------- | 31.3.2009 | Total | Assets, | Liabiliti | | | nominal | fair | es, fair | | | amount | value | value | -------------------------------------------------------------------------------- | Fair value hedging | | | | -------------------------------------------------------------------------------- | Interest rate-related | 1,340.0 | 58.5 | - | -------------------------------------------------------------------------------- | Total | 1,340.0 | 58.5 | 0.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow hedging | | | | -------------------------------------------------------------------------------- | Interest rate-related | 1,232.0 | 37.6 | 19.9 | -------------------------------------------------------------------------------- | Total | 1,232.0 | 37.6 | 19.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Derivative instruments valued through | | | | | profit and loss | | | | -------------------------------------------------------------------------------- | Interest rate-related *) | 6,993.0 | 104.9 | 103.6 | -------------------------------------------------------------------------------- | Currency-related | 171.2 | 2.3 | 2.8 | -------------------------------------------------------------------------------- | Equity-related **) | 114.0 | 1.8 | 1.8 | -------------------------------------------------------------------------------- | Other derivative instruments **) | 8.6 | 0.6 | 0.6 | -------------------------------------------------------------------------------- | Total | 7,286.8 | 109.6 | 108.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total derivative instruments | | | | -------------------------------------------------------------------------------- | Interest rate-related | 9,565.0 | 201.0 | 123.5 | -------------------------------------------------------------------------------- | Currency-related | 171.2 | 2.3 | 2.8 | -------------------------------------------------------------------------------- | Equity-related | 114.0 | 1.8 | 1.8 | -------------------------------------------------------------------------------- | Other derivative instruments | 8.6 | 0.6 | 0.6 | -------------------------------------------------------------------------------- | Total | 9,858.8 | 205.7 | 128.7 | -------------------------------------------------------------------------------- | *) Interest-linked derivatives include interest rate hedging provided for | | local banks which after back-to-back hedging with third parties amounted to | | EUR 6,689.0 (6,674.7) million. | -------------------------------------------------------------------------------- | **) All equity-related and other derivative instruments relate to the | | hedging of structured debt products. | -------------------------------------------------------------------------------- Off-balance sheet commitments -------------------------------------------------------------------------------- | (EUR million) | 31.3.201 | 31.12.20 | 31.3.2009 | | | 0 | 09 | | -------------------------------------------------------------------------------- | Commitments provided to a third party on | | | | | behalf of the customers | | | | -------------------------------------------------------------------------------- | Guarantees | 49.3 | 49.9 | 53.6 | -------------------------------------------------------------------------------- | Other commitments provided to a third | 6.3 | 7.3 | 6.9 | | party | | | | -------------------------------------------------------------------------------- | Irrevocable commitments provided on behalf | | | | | of customers | | | | -------------------------------------------------------------------------------- | Unused credit arrangements | 531.8 | 506.6 | 514.6 | -------------------------------------------------------------------------------- | Other commitments provided to a third | 11.0 | 11.7 | 12.8 | | party | | | | -------------------------------------------------------------------------------- | Off-balance sheet commitments | 598.3 | 575.5 | 587.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Note 4 The Group's risk exposure The Bank Group's capital adequacy -------------------------------------------------------------------------------- | (EUR million) | -------------------------------------------------------------------------------- | Summary | 3/2010 | 12/2009 | 9/2009 | 6/2009 | 3/2009 | -------------------------------------------------------------------------------- | Tier 1 capital | 337.5 | 329.0 | 319.2 | 309.4 | 298.9 | -------------------------------------------------------------------------------- | Tier 2 capital | 235.4 | 222.8 | 219.5 | 183.4 | 172.8 | -------------------------------------------------------------------------------- | Capital base | 572.9 | 551.8 | 538.7 | 492.8 | 471.8 | -------------------------------------------------------------------------------- | Risk-weighted amount for | 3,214. | 3,147.5 | 3,220.7 | 3,122.2 | 3,062.8 | | credit and counterparty | 5 | | | | | | risks | | | | | | -------------------------------------------------------------------------------- | Risk-weighted amount for | - | - | - | - | - | | market risks 1) | | | | | | -------------------------------------------------------------------------------- | Risk-weighted amount for | 312.7 | 312.7 | 272.7 | 272.7 | 272.7 | | operational risks | | | | | | -------------------------------------------------------------------------------- | Risk-weighted commitments | 3,527. | 3,460.2 | 3,493.4 | 3,394.8 | 3,335.5 | | | 2 | | | | | -------------------------------------------------------------------------------- | Capital adequacy ratio, % | 16.2 | 15.9 | 15.4 | 14.5 | 14.1 | -------------------------------------------------------------------------------- | Tier 1 Capital ratio, % | 9.6 | 9.5 | 9.1 | 9.1 | 9.0 | -------------------------------------------------------------------------------- | Minimum capital requirement | 282.2 | 276.8 | 279.5 | 271.6 | 266.8 | -------------------------------------------------------------------------------- | Capital buffer (difference | 290.7 | 275.0 | 259.2 | 221.2 | 204.9 | | between 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) | -------------------------------------------------------------------------------- | | 3/2010 | 12/2009 | 9/2009 | 6/2009 | 3/2009 | -------------------------------------------------------------------------------- | Share capital | 163.0 | 163.0 | 163.0 | 163.0 | 163.0 | -------------------------------------------------------------------------------- | Funds | 44.6 | 44.6 | 44.6 | 44.6 | 44.6 | -------------------------------------------------------------------------------- | Minority share | 32.7 | 32.7 | 30.0 | 30.2 | 24.0 | -------------------------------------------------------------------------------- | Retained earnings | 95.8 | 70.7 | 70.7 | 70.7 | 70.7 | -------------------------------------------------------------------------------- | Profit for the period | 11.6 | 38.0 | 26.0 | 13.9 | 5.1 | -------------------------------------------------------------------------------- | ./. Provision for dividends | -3.7 | -12.9 | -7.5 | -5.0 | - | | to shareholders | | | | | | -------------------------------------------------------------------------------- | Total | 343.9 | 336.0 | 326.7 | 317.4 | 307.4 | -------------------------------------------------------------------------------- | ./. Intangible assets | -6.4 | -7.0 | -7.5 | -8.0 | -8.4 | -------------------------------------------------------------------------------- | ./. Shares in insurance | - | - | - | - | - | | companies | | | | | | -------------------------------------------------------------------------------- | Tier 1 capital | 337.5 | 329.0 | 319.2 | 309.4 | 298.9 | -------------------------------------------------------------------------------- | Fund at fair value | 21.6 | 13.3 | 14.9 | -16.3 | -21.6 | -------------------------------------------------------------------------------- | Upper Tier 2 loans | 45.0 | 45.0 | 45.0 | 45.0 | 45.0 | -------------------------------------------------------------------------------- | Lower Tier 2 loans | 168.8 | 164.5 | 159.6 | 154.7 | 149.5 | -------------------------------------------------------------------------------- | ./. Shares in insurance | - | - | - | - | - | | companies | | | | | | -------------------------------------------------------------------------------- | Tier 2 capital | 235.4 | 222.8 | 219.5 | 183.4 | 172.8 | -------------------------------------------------------------------------------- | Total capital base | 572.9 | 551.8 | 538.7 | 492.8 | 471.8 | -------------------------------------------------------------------------------- The Bank Group's risk-weighted exposures -------------------------------------------------------------------------------- | Total exposure 3/2010 | | | (EUR million) | -------------------------------------------------------------------------------- | Risk-weight | Balance sheet | Off-balance | Total | | | items | sheet | | | | | commitments | | -------------------------------------------------------------------------------- | 0% | 1,499.5 | 38.5 | 1,538.0 | -------------------------------------------------------------------------------- | 10% | 1,289.6 | 0.0 | 1,289.6 | -------------------------------------------------------------------------------- | 20% | 1,235.4 | 278.3 | 1,513.7 | -------------------------------------------------------------------------------- | 35% | 4,631.1 | 99.7 | 4,730.8 | -------------------------------------------------------------------------------- | 50% | 0.0 | 0.2 | 0.2 | -------------------------------------------------------------------------------- | 75% | 585.2 | 86.6 | 671.8 | -------------------------------------------------------------------------------- | 100% | 628.1 | 89.7 | 717.7 | -------------------------------------------------------------------------------- | 150% | 14.6 | 0.6 | 15.3 | -------------------------------------------------------------------------------- | Total | 9,883.6 | 593.5 | 10,477.2 | -------------------------------------------------------------------------------- | Derivatives *) | 316.5 | - | 316.5 | -------------------------------------------------------------------------------- | Total | 10,200.2 | 593.5 | 10,793.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Risk-weighted exposures, Basel 2 | | | (EUR | | | | | million) | -------------------------------------------------------------------------------- | Risk-weight | 3/2010 | 12/2009 | 9/2009 | 6/2009 | 3/2009 | -------------------------------------------------------------------------------- | 0% | - | - | - | - | - | -------------------------------------------------------------------------------- | 10% | 129.0 | 115.9 | 111.3 | 101.6 | 89.7 | -------------------------------------------------------------------------------- | 20% | 258.6 | 252.5 | 341.9 | 291.8 | 290.8 | -------------------------------------------------------------------------------- | 35% | 1,633.5 | 1,596.8 | 1,567.2 | 1,516.6 | 1,470.1 | -------------------------------------------------------------------------------- | 50% | 0.1 | 0.1 | 4.8 | 3.5 | 3.0 | -------------------------------------------------------------------------------- | 75% | 466.9 | 466.1 | 457.8 | 447.2 | 439.1 | -------------------------------------------------------------------------------- | 100% | 673.4 | 673.3 | 694.0 | 702.5 | 720.9 | -------------------------------------------------------------------------------- | 150% | 22.5 | 19.1 | 22.4 | 32.7 | 24.0 | -------------------------------------------------------------------------------- | Total | 3,183.9 | 3,123.7 | 3,199.6 | 3,096.0 | 3,037.6 | -------------------------------------------------------------------------------- | Derivatives | 30.6 | 23.8 | 21.1 | 26.2 | 25.2 | | *) | | | | | | -------------------------------------------------------------------------------- | Total | 3,214.5 | 3,147.5 | 3,220.7 | 3,122.2 | 3,062.8 | -------------------------------------------------------------------------------- | *) derivative agreements credit conversion factor | -------------------------------------------------------------------------------- In its capital adequacy measurement to determine the exposure's risk weight, Aktia applies credit ratings by Moody's Investors Service or Standard & Poor's to receivables from central governments and central banks, credit institutions, investment firms 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. The Bank Group's risk-weighted amount for operative risks -------------------------------------------------------------------------------- | Year | 20 | 20 | 20 | 200 | | 3/201 | 12/20 | 9/200 | 6/200 | 3/200 | | | 09 | 08 | 07 | 6 | | 0 | 09 | 9 | 9 | 9 | -------------------------------------------------------------------------------- | Gross | 20 | 15 | 14 | 140 | | | | | | | | income | 4. | 0. | 5. | .6 | | | | | | | | | 7 | 5 | 2 | | | | | | | | -------------------------------------------------------------------------------- | - average | 16 | 14 | | | | | | | | | | 3 years | 6. | 5. | | | | | | | | | | | 8 | 4 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital | | | | | 25.0 | 25.0 | 21.8 | 21.8 | 21.8 | | requirement for | | | | | | | | | | | operative risk | | | | | | | | | | -------------------------------------------------------------------------------- | Risk-weighted | | | | | 312.7 | 312.7 | 272.7 | 272.7 | 272.7 | | amount, Basel 2 | | | | | | | | | | -------------------------------------------------------------------------------- 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 %. The finance and insurance conglomerate's capital adequacy -------------------------------------------------------------------------------- | Summary | 3/2010 | 12/2009 | 9/2009 | 6/2009 | 3/2009 | -------------------------------------------------------------------------------- | Tier 1 capital for the | 396.7 | 400.7 | 388.1 | 375.0 | 370.6 | | group | | | | | | -------------------------------------------------------------------------------- | Sector-specific items | 261.5 | 233.2 | 229.4 | 176.4 | 143.0 | -------------------------------------------------------------------------------- | Intangible assets and | -118.9 | -120.0 | -105.8 | -91.2 | -93.8 | | other specific reductions | | | | | | -------------------------------------------------------------------------------- | Other sector-specific not | - | - | - | - | - | | transferrable items | | | | | | -------------------------------------------------------------------------------- | Conglomerate's total | 539.3 | 513.9 | 511.7 | 460.2 | 419.8 | | capital base | | | | | | -------------------------------------------------------------------------------- | Capital requirement for | 284.9 | 279.4 | 282.1 | 273.8 | 268.7 | | banking business | | | | | | -------------------------------------------------------------------------------- | Capital requirement for | 47.3 | 47.1 | 47.6 | 47.9 | 47.9 | | insurance business | | | | | | -------------------------------------------------------------------------------- | Minimum amount for | 332.1 | 326.5 | 329.6 | 321.6 | 316.5 | | capital base | | | | | | -------------------------------------------------------------------------------- | Conglomerate's capital | 207.2 | 187.4 | 182.0 | 138.6 | 103.2 | | adequacy | | | | | | -------------------------------------------------------------------------------- | Capital adequacy ratio, % | 162.4 % | 157.4 % | 155.2 % | 143.1 % | 132.6 % | -------------------------------------------------------------------------------- The conglomerate's capital adequacy is based on consolidation method and is calculated according to FICO rules and the standards of Financial Supervision Authority. Note 5 Net income from insurance business -------------------------------------------------------------------------------- | (EUR million) | 1-3/2010 | 1-3/2009 | Change | 1-12/2009 | -------------------------------------------------------------------------------- | Income from insurance | 26.0 | 20.5 | 26.7 % | 80.5 | | premiums | | | | | -------------------------------------------------------------------------------- | Net income from | 7.0 | -3.0 | - | 0.4 | | investments | | | | | -------------------------------------------------------------------------------- | Insurance claims paid | -22.2 | -25.0 | -11.1 % | -79.8 | -------------------------------------------------------------------------------- | Net change in | -6.3 | 12.9 | - | 12.8 | | technical provisions | | | | | -------------------------------------------------------------------------------- | Net income from | 4.5 | 5.4 | -16.1 % | 14.0 | | life-insurance | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Premium income earned | 14.8 | 13.9 | 6.7 % | 60.6 | -------------------------------------------------------------------------------- | Net income from | 0.8 | -1.5 | - | 1.6 | | investments | | | | | -------------------------------------------------------------------------------- | Insurance claims paid | -11.8 | -10.1 | 17.2 % | -42.2 | -------------------------------------------------------------------------------- | Change in provisions | 0.6 | -0.3 | - | -4.7 | | for outstanding | | | | | | claims | | | | | -------------------------------------------------------------------------------- | Net income from | 4.4 | 2.0 | 123.7 % | 15.2 | | non-life insurance | | | | | -------------------------------------------------------------------------------- Note 6 businesses acquired Aktia Plc has not acquired any new entities during the first quarter of 2010. The merger with Veritas Non-Life Insurance was concluded on 1 January 2009, where after the non-life insurance business has been operated by Aktia Non-Life Insurance, a 100%-owned subsidiary of Aktia plc. As merger compensation, Aktia plc issued 6,800,000 new shares. The non-life insurance business' acquisition balance sheet was presented in Note 4 in the financial statements 31.12.2009. Helsinki 7 May 2010 AKTIA PLC Board of Directors To the Board of Directors of Aktia p.l.c. review report on the interim report of aktia plc as of 31.3.2010 introduction We have reviewed the balance sheet as of 31.3.2010, the income statement, the statement of changes in equity and the cash flow statement of Aktia p.l.c. for the three-month period then ended, as well as a summary of significant accounting policies and other explanatory notes to the financial statements. The Board of Directors and the Managing Director are responsible for the preparation and fair presentation of this interim financial information in accordance with the International Financial Reporting Standards (IFRS), as adopted by the EU, and other Finnish rules and regulations governing the preparation of interim reports. At the request of the Board of Directors we issue our opinion on the interim report. scope of review We conducted our review in accordance with the Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the standards on auditing and other generally accepted auditing practices, and therefore the procedures performed in a review do not enable to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. opinion Based on our review, nothing has come to our attention that causes us to believe that the Interim Report does not give a true and fair view of the entity's financial position as of 31 March 2010 and the result of its operations and cash flows for the three-month period then ended, in accordance with the International Financial Reporting Standards (IFRS), as adopted by the EU and other applicable rules and regulations governing interim financial reporting preparation in Finland. Helsinki, 7 May 2009 PricewaterhouseCoopers Oy Authorised Public Accountants Jan Holmberg Authorised Public Accountant Aktia plc PO Box 207 Mannerheimintie 14 FIN-00101 Helsinki Tel. +358 (0)10 247 5000 Fax +358 (0)10 247 6356 CEO Jussi Laitinen tel. +358 01 247 5000 Deputy Managing Director, CFO Stefan Björkman tel. +358 01 247 5000 Investor Relations Officer Anna Gabrán tel. +358 10 247 6501 ir(at)aktia.fi Business ID 0108664-3 BIC/S.W.I.F.T. HELSFIHH Investor Relations PO Box 207 Mannerheimintie 14 FIN-00101 Helsinki Website: www.aktia.fi Contact address: aktia(at)aktia.fi E-mail logic: first name.surname(at)aktia.fi |
|||
|