Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q3 2022 Earnings Presentation
28 slides from Aktia Bank Plc Class A's earnings presentation, Nov 4, 2022
Slide 1: Q3 2022 Results Presentation
3 Resul Mikko Ayub, CEO Outi Henriksson, CFO
Slide 2: Highlights Q3 2022
Aktia 8 2022 Results Presentation Highlights Q3 2022 ¢ Interest income from lending continued to grow strongly and the average margin for the entire loan book continued to improve. * Increased funding and hedging costs weighed down net interest income. * Net subscriptions in asset management were po
Slide 3: Market decline weighed down operating profit
Aktia 8 2022 Results Presentation ann 3 Market decline weighed down operating profit Comparable operating profit 2018-2022 EUR million 100 90 + so + 7o 65.4 68.2 60 7 55.1 50 + 2018 2019 2020 2021 2022
Slide 4: 2022 Results Presentation
Aktia 3 2022 Results Presentation
Slide 5: Rapid increase in housing loan interest rates
Aktia 3 2022 Results Presentation ann 5 Rapid increase in housing loan interest rates 12 month Euribor rate Percent 2,74 % 00 -05 en a a -10 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct 2017 2018 2019 2020 2021 2022 Source: European Money Markets In
Slide 6: Corporate customer activity at high level
Aktia 8 2022 Results Presentation Banking Asset Management Life Insurance 4/11/22 6 Corporate customer activity at high level * The corporate customer activity remained strong, especially asset-based financing continued to grow. * Active pricing and volume growth increased interest income from corpo
Slide 7: Positive net subscriptions in difficult market environment
Aktia 8 2022 Results Presentation Banking Asset Management Life Insurance 4/11/22 7 Positive net subscriptions in difficult market environment * Net subscriptions were positive at EUR 95 million. The development was positive for both domestic institutions and private banking customers. * AuM decreas
Slide 8: Increase in rates continued to weigh down investment portfolio
Aktia 3 2022 Results Presentation Banking Asset Management Life Insurance 4/m1/22 Increase in rates continued to weigh down investment portfolio woot : : Development of the actuarially calculated result Q-o-Q * Life insurance business continued to P Y develop well. ; EUR million * New sales of risk
Slide 9: Earn award points with every purchase
Earn award points with every purch
Slide 10: UI-Aktia Sustainable Corporate Bond fund
Aktia Q3 2022 Results Presentation = 2 4IN22 10 Ul-Aktia Susi Corporate B Aktia launched the new, UI-Aktia Sustainable 1 September 2022. In accordance with Article 9 of the EU Sustainable Finance Disc Regulation the fund invests only in green, social, and responsible bo! well as sustainability-linke
Slide 11: Outlook 2022 (updated October 2022)
Aktia 8 2022 Results Presentation ann n Outlook 2022 (updated 27 October 2022) New outlook for 2022: Aktia's comparable operating profit in 2022 is expected to be lower than in 2021. A key uncertainty regarding the outlook is the development of the market value of different asset classes. Previous o
Slide 12: Outlook 2022
Aktia 8 2022 Results Presentation ann » Outlook 2022 * The net interest income is expected to remain on the same level or be slightly higher than in the third quarter. The positive impact of the increasing short-term reference rate on private customers’ net interest income will be gradually visible
Slide 13: Financial targets 2025
Aktia Financial targets 2025 Q3 2022 Results Presentation 4/11/22 Comparable operating profit above EUR 120 million 1-9/2022; EUR 50.4 million Comparable return on Equity (ROE) above 12% 30 September 2022; 8.3% Comparable cost-to-income ratio under 0.60 1-9/2022; 0.71 Common Equity Tier 1 capital ra
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Slide 15: Financial summary Q3
Aktia Q3 2022 Results Presentation Financial summary Q3 EUR ion 3Q2022 3Q2021 9/2022 1-9/2021 Total operating income 56.2 671 -16% 186.8 198.3 6% Net interest income 24.0 231 4% 75.0 72.2 4% Net commission income 299 33.5 -1% 92.9 90.3 3% Net income from life insurance 34 97 -65% 179 301 ~41% Other
Slide 16: Rising interest rates increased interest income from lending
Aktia 8 2022 Results Presentation 42216 Rising interest rates increased interest income from lending Comparable operating income, Q-o-Q * Interest income from lending continued to EUR million grow strongly nN oe 66.5 655 14 * Net interest income was weighed down by oe pe 02 588 127 562 increase in f
Slide 17: Composition of the Group net interest income
Aktia Q3 2022 Results Presentation 4/11/22 Composition of the Group net interest income EUR million 30 207 24.0 53 24 261 25 W7 21.3 ee Os 05 a 2.0 i °0 ™ Senior Debt & Other TLTRO loan 5 m Hedging with interest rate derivatives Liquidity portfolio ™ Borrowing 10 m Lending 5 ie) 14 5 1/2021 2/2021 9
Slide 18: Net commission income mix
Aktia 3 2022 Results Presentation 4/n/22 18 Net commission income mix EUR million 35 33.7 06 14 06 31.3 316 299 25 : 30 08 08 55 05 Other 25 Insurance 20 Lending ™ Card, payment services and borrowing 6 = Mutual funds, asset management and securities brokerage 10 5 ° 93/2021 4/2021 Q1/2022 Q2/2022 Q
Slide 19: Underlying profit remained stable despite negative changes in market values
Aktia 8 2022 Results Presentation 42219 Underlying profit remained stable despite negative changes in market values Comparable operating profit 1-9/2022 vs 1-9/2021 EUR million -0.2 26 2.8 66.7 Net Actuarially commission calculated Net interest income result income (Net income from life insurance) 1
Slide 20: Expected credit losses at a moderate level
Aktia Q3 2022 Results Presentation 4/11/22 20 Expected credit losses at a moderate level Reservations for expected Change in expected credit losses (ECL) 1-9/2022 credit losses increased by EUR 2.5 million in Q3, EUR million cumulative increase totaling at EUR 5.0 million (income -03 statement) inte
Slide 21: Balance sheet total increased to EUR 11 860 million
Aktia Q3 2022 Results Presentation Balance sheet total increased to EUR 11 860 million Total assets EUR million 11653 11860 10,000 8,000 1m Lending to the public and public-sector entities 6,000 Liquidity portfolio 4,000 - Life insurance assets 1306 incl. Unit Link 2,000 1714 Other assets 447 1318 °
Slide 22: CET1 ratio 2.9 percentage points above the requirement
Aktia 3 2022 Results Presentation requirement percentage points. The risk-weighted assets decreased by lending. 4/11/22 22 e e CET1 ratio 2.9 percentage points above the The CET1 ratio was 10.6% and increased from Q2 by 0.2 cET1 % % 20 EUR 6 million in 3Q. Increase from the beginning of the 18 9 yea
Slide 23: Funding activities
Aktia 8 2022 Results Presentation Funding activities * During the Q3 Debt Capital Market has been further challenged by the swift rise of interest rates and the investor appetite has been focusing on issued Covered Bonds instead of credit risk instruments. Senior issuance margin levels have widened
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Slide 25: AuM: net subscriptions and market changes
Aktia Q3 2022 Results Presentation 4/11/22 25 AuM: net subscriptions and market changes Asset Management, Aktia UI Q-0-Q EUR million 2040 -468 9 1581-153 |_| “27 4401 37 — 1447 15 4 1417 Asset Management, Domestic institutions Q-o-Q EUR million 232 7267 -21 yas 7070 .35 — 51-369 6831 mom T 233 6 AUM
Slide 26: AuM: net subscriptions and market changes
Aktia 8 2022 Results Presentation 4i22 26 AuM: net subscriptions and market changes Asset Management, Private Banking Q-0-Q Asset Management, External channels Q-o-Q EUR million 162 4483 10 -241 EUR million z 1% 470 51 4323 2 | | 4252 25-325 42-92 3952 fe jim 2.902 385-2 33 AUM AUM AUM AUM AUM AUM A
Slide 27: AuM: net subscriptions and market changes
Aktia 8 2022 Results Presentation 4227 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million 2008 13-28 — Se 193) 1 166 | 1828 = -2 470 if 1657-2 -76 157 AUM 9/2021 AUM 12/2021 AUM 3/2022 AUM 6/2022 AUM 9/2022 Minet subscriptions ll Market changes
Slide 28: Building wealth for our customers and society
BOO Building wealth for our customers and society Investor Relations contacts: Lotta Borgstrém Director, Investor Relations and Communications +358 10 247 6838 lotta.borgstrom@aktia fi Aktia