Release of Aktia Bank Plc financial statements

Aktia Bank Plc
Stock Exchange press release
February 16, 2022 at 8:00 a.m.

Publication of Aktia Bank Plc financial statements from January to December 2021: 2021 – a year of strong growth

The quarter inot short

  • The growth of business loans remained strong, that of mortgage loans was more moderate.
  • Assets under management of EUR 15.5 billion are almost at the same level as in the previous quarter.
  • The Common Equity Tier 1 (CET1) ratio of 11.2% was slightly higher than the previous quarter (10.4%).
  • The integration of Taaleri’s wealth management activities went according to plan, the company was merged with Aktia Bank at the end of the year.
  • Aktia became co-owner of Alexander Corporate Finance.

The year in brief

  • The comparable operating profit for the year, at 87.4 (55.1) million euros, was the highest in Aktia’s history.
  • The comparable result increased by 31% during the year.
  • Growth in all revenue categories, the acquisition of Taaleri’s wealth management business supported the increase in fee income.
  • Aktia becomes a wealth management bank ─ according to the strategy update in the fall, the focus is on close cooperation between business areas (banking, asset management, life insurance).

Outlook 2022

Comparable operating profit for 2022 is expected to be slightly higher than for 2021, provided market developments and the situation in society remain stable.

Dividend

The Board of Directors is proposing a dividend of EUR 0.56 per share.

Mikko Ayub, CEO:

Aktia performed historically well in 2021. Comparable operating profit amounted to 87.4 (55.1) million euros and increased by 59% compared to the previous year. I am therefore very satisfied with Aktia’s performance last year and proud of the valuable work that Aktia employees have done in these exceptional circumstances. At the same time, it should be borne in mind that the 2020 reference period was burdened by the outbreak of the coronavirus pandemic and its impact on the market.

Aktia’s comparable operating income for 2021 increased by 31% to €263.2 (201.1) million. The development of net interest income in the last quarter of the year and throughout the year was once again consistently strong and demonstrates the consistent performance of Aktia’s banking business in different market environments. . Aktia’s loan portfolio grew by around 7% during the year, driven in particular by small and medium-sized enterprises. So I see great potential for growth in Aktia’s corporate business, supported by Aktia’s recent 20% minority stake in investment bank Alexander Corporate Finance. Demand for mortgage loans also remained strong throughout the year, in line with our prudent credit policy.

Aktia’s commission income also increased strongly compared to last year. The acquisition of Taaleri’s wealth management business partly explains the year-over-year increase, but fee income also grew organically. The negative net subscriptions of the last quarter are associated with a change in the allocation of an institutional client. I am particularly pleased with the tremendous performance of Aktia Private Banking over the past year – good growth continued throughout the year, both in terms of revenue and client volumes. Long-term development, high-quality wealth management and genuinely personalized service are also reflected in the results: in the Prospera customer survey, Aktia Private Banking takes an excellent second place.

The life insurance business performed well over the past year. Personal insurance and investment-linked insurance sales continued to be strong. In November, Aktia Life Insurance Ltd also issued its very first Tier 2 transaction (56 million euros), which strengthened its solvency.

Aktia’s comparable expenses for the full year amounted to 171.1 (141.9) million euros and increased by approximately one-fifth compared to last year. The main explanation for the increase in expenses is the normal structure of operating costs which increased following the acquisition of Taaleri’s wealth management business. As of December 31, 2021, Aktia’s CET1 capital ratio was 11.2% (10.4%; September 30, 2021), which is significantly higher than the regulatory requirement imposed on Aktia and in line with its own financial objectives. of the company.

The Aktia Board of Directors proposes, in line with our dividend policy, that a dividend of EUR 0.56 per share be paid for 2021, which represents 60% of the profit of the reference period. Traditionally, Aktia has been a reliable dividend payer, now associated with a clear growth strategy.

The integration of by Taaleri the wealth management business grew as expected

The acquisition of Taaleri’s wealth management business last spring was not only the largest transaction in Aktia’s history, but also a clear step towards our vision of being the premier wealth management bank. wealth in Finland. Cooperation on alternative investment products between Aktia and Taaleri, driven by the transaction, began at the end of the year with the mutual fund Asunto VIII. The integration of business functions is complete in many respects, although some system integrations will continue throughout this year. The planned mergers between equity and bond funds were carried out before the merger of the management companies at the end of the year. Aktia’s portfolio management was also strengthened by several new hires at the end of the year, and Aktia has one of the largest and most versatile portfolio management teams in Finland.

The implementation of the strategy we updated this fall has started smoothly: we have completed many Aktia legacy projects for our customers thanks to good cooperation between all business areas. Thus, we are in a good position when the new year begins.

Key figures

(millions of euros) Q4/2021 Q4/2020 ∆% 2021 2020 ∆% Q3/2021 ∆% Q2/2021 Q1/2021
Net interest income 24.1 20.8 16% 96.2 80.7 19% 23.1 4% 27.7 21.3
Net commissions 33.7 25.4 33% 124.0 97.6 27% 33.5 0% 31.7 25.0
Net life insurance income 7.6 10.2 -26% 37.7 19.9 89% 9.7 -22% 10.5 9.9
Total operating result 65.5 57.0 15% 263.8 201.1 31% 67.1 -2% 73.3 57.9
Operating Expenses -45.2 -36.4 24% -174.4 -142.2 23% -41.6 -9% -48.8 -38.7
Impairment of credits and other commitments 0.1 -0.8 -4.5 -4.0 11% -1.0 -1.4 -2.2
Operating result 20.3 19.7 3% 84.6 54.8 54% 24.4 -17% 23.0 16.9
Comparable operating profit1 65.5 57.0 15% 263.2 201.1 31% 66.5 -1% 73.3 57.9
Comparable operating expenses1 -44.9 -36.3 24% -171.1 -141.9 21% -41.6 -8% -45.9 -38.7
Comparable operating profit1 20.7 19.8 4% 87.4 55.1 59% 23.8 -13% 26.0 16.9
Cost/revenue ratio 0.69 0.64 8% 0.66 0.71 -7% 0.62 11% 0.67 0.67
Comparable cost/income ratio1 0.69 0.64 7% 0.65 0.71 -8% 0.63 ten% 0.63 0.67
Earnings per share (EPS), EUR 0.23 0.22 5% 0.95 0.61 56% 0.28 -18% 0.24 0.20
Comparable earnings per share (EPS), EUR 1)1 0.23 0.22 8% 0.98 0.61 60% 0.27 -13% 0.28 0.20
Return on equity (ROE), %3 9.5 9.2 3% 10.0 6.7 50% 11.4 -17% 10.5 8.6
Comparable return on equity (ROE), %1.3 9.6 9.3 4% 10.3 6.7 54% 11.2 -14% 12.3 8.6
Common Equity Tier 1 (CET1) ratio, %2 11.2 14.0 -20% 11.2 14.0 -20% 10.4 8% 10.8 13.8
Dividend per share (proposed by the Board of Directors), EUR 0.56 0.43 30%

1) Alternative performance indicators excluding items affecting comparability
2) At the end of the period
3) The definition of ROE has been updated

Results conference webcast

A live webcast of the results event will take place on February 16, 2022 at 10:30 a.m. CEO Mikko Ayub and CFO Outi Henriksson will present the results. The event takes place in English and can be seen live at https://aktia.videosync.fi/2021-q4-results. A recording of the webcast will be available on www.aktia.com after the event.

AKTIA BANK PLC

For more information:
Outi Henriksson, CFO, tel. +358 10 247 6236
Lotta Borgström, Director, Investor Relations and Communications, tel. +358 10 247 6838, lotta.borgstrom (at) aktia.fi

Distribution:
Nasdaq Helsinki Ltd
Central Media
www.aktia.com

Aktia is a Finnish asset manager, bank and life insurance company that has been creating wealth and well-being from generation to generation for 200 years. We serve our customers across digital channels and face-to-face from our offices in Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management company sells investment funds internationally. We employ around 900 people in Finland. from Aktia assets under management (At M) on December 31, 2021 amounted to EUR 15.5 billion, and the balance sheet total amounted to EUR 11.7 billion. from Aktia the shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.

Marianne R. Winn