2017-08-08 07:00:04 CEST

2017-08-08 07:00:04 CEST


REGULATED INFORMATION

Aktia Pankki Oyj - Half Year financial report

Aktia Bank plc Half-year report January-June 2017

CONTINUED STRONG SALES

 

Aktia Bank plc
Half-year report January-June 2017
8.8.2017 at 8:00 a.m.

CEO Martin Backman

”Net commission income increased by 19 % thanks to strong sales of mutual funds and asset management. Net interest income from borrowing and lending continued to increase, while the, as expected, lower returns from the liquidity portfolio resulted in a decrease of total net interest income by 5 %. Excluding items affecting comparability1, such as gains from the sale of Visa Europe in 2016 and the costs for restructuring this spring, operating profit was stable at EUR 16.9 (16.6) million.”

April - June 2017:

  • Total income amounted to EUR 54.2 (59.4) million, with a significant increase of net commission income to EUR 24.6 (20.7) million. In the reference period 2016, Aktia received one-time gains of EUR 5.9 million from the sale of Visa Europe. Yield from the liquidity portfolio deceased by EUR 2 million in April–June, which burdened net interest income.
     
  • The new core banking system was implemented successfully in the first week of July.
     
  • Total expenditure rose by 8 % to EUR 39.7 (36.8) million. The increase in expenses is mainly attributable to personnel-related costs for restructuring of EUR 2.4 million as well as to an increase in IT expenses of 1.3 million due to completion of the system change. The ongoing organisation changes and the implemented core banking system are expected to improve efficiency and result in a lower cost structure from 2018 onwards. The transformation of Aktia is made in order to strengthen customer focus and to increase profitability.
     
  • Outlook for 2017 (unchanged): The operating profit for 2017 is estimated to be lower than in 2016, as no larger one-time gains are expected.

  

Key figures

(EUR million) 2Q2017 2Q2016 ∆ %      1H2017 1H2016 ∆ %      1Q2017 2Q/1Q      2016
Net interest income 22.9 24.1 -5 % 46.2 48.7 -5 % 23.4 -2 % 95.6
Net commission income 24.6 20.7 19 % 45.7 39.6 16 % 21.1 16 % 79.7
Total operating income 54.2 59.4 -9 % 107.3 109.8 -2 % 53.1 2 % 211.3
Total operating expenses -39.7 -36.8 8 % -77.0 -73.3 5 % -37.3 7 % -148.4
Write-downs on credits and other
commitments		 -0.1 -0.1 -54 % -0.1 -0.2 -45 % -0.1 12 % -2.2
Operating profit 14.4 22.4 -36 % 30.8 37.0 -17 % 16.4 -12 % 61.5
Comparable operating profit1 16.9 16.6 2 % 32.8 32.2 2 % 15.9 6 % 57.5
Cost-to-income ratio 0.73 0.62 18 % 0.72 0.67 7 % 0.70 4 % 0.70
Earnings per share (EPS), EUR 0.17 0.27 -37 % 0.37 0.45 -18 % 0.20 -15 % 0.74
Equity per share (NAV)2, EUR 8.84 9.15 -3 % 8.84 9.15 -3 % 9.34 -5 % 9.24
Return on equity (ROE), % 7.4 11.6 -36 % 8.2 9.8 -16 % 8.7 -15 % 8.0
Common Equity Tier 1 capital ratio2, % 18.0 19.7 -8 % 18.0 19.7 -8 % 18.2 -1 % 19.5
Capital adequacy ratio2, % 24.3 26.2 -7 % 24.3 26.2 -7 % 24.8 -2 % 26.3

1 Alternative performance measures exclusive items affecting comparability, see page 18
2 At the end of the period

 

Helsinki 8 August 2017

AKTIA BANK PLC

The Board of Directors

 

Distribution:
Nasdaq Helsinki,
mass media,
www.aktia.com

Aktia provides a broad range of products within banking, insurance and real estate agency. Aktia operates mainly in coastal areas and inland growth areas. Aktia has ca 380,000 customers who are served by about 1,000 employees at 45 branch offices and via online and telephone services. Aktia's shares (AKTAV, AKTRV) are listed on the list of Nasdaq Helsinki Ltd. For more information about Aktia see www.aktia.com

         CEO Martin Backman, tel. +358 10 247 6250
         Head of IR Anna Gabrán, tel. +358 10 247 6501, ir(at) aktia.fi