Aktia Bank PLC Class A · OMXHEX:AKTIA
Aktia Bank PLC Class A — Q4 2020 Earnings Presentation
30 slides from Aktia Bank PLC Class A's earnings presentation, Feb 18, 2021
Slide 1: Q4 Results
18 FEBRUARY 2021 Q4 Results Mikko Ayub CEO
Slide 2: Aktia's Q4 2020 in brief
Aktia’s Q4 2020 in brief • Stable financial performance continued: the comparable operating profit for the quarter was EUR 19.8 (19.2) million • Assets under management (AuM) were at an all- time high and amounted to EUR 10.4 billion • The good development of net interest income continued, Aktia’s m
Slide 3: Coronavirus pandemic: overall impacts and measures during 2020
Coronavirus pandemic: overall impacts and measures during 2020 • The market drop during the first quarter led to negative value changes in the life insurance company’s investment portfolio and assets under management • However, the financial performance recovered quickly during the second quarter •
Slide 4: Outlook 2021
Outlook 2021 The comparable operating profit for 2021 is expected to be clearly higher than during 2020 provided that the circumstances on the market and in society are stable. • The increase in net interest income is expected to continue owing to a volume increase and reasonable financing expenses.
Slide 5: Dividend proposal
Dividend proposal Considering the recommendations issued by the authorities’, the Board proposes that Aktia Bank Plc's Annual General Meeting authorises the Board to later decide on the payment of a maximum dividend of EUR 0.43 per share for the financial year 2020. The payment is carried out at one
Slide 6: AuM at an all-time high level
AuM at an all-time high level Asset Management Assets under management excluding custody (AuM) Asset Management EUR million • AuM increased strongly during Q4 due to positive net subscriptions and the increased market prices for risk 12,000 10,447 investments 9,853 9,623 10,000 8,353 9,233 • A distr
Slide 7: Aktia's Morningstar rating exceptionally strong
Aktia’s Morningstar rating exceptionally strong 01/2021 4.3 4.1 3.9 3.7 3.5 3.3 3.1 2.9 2.7 2.5 01 2018 04 2018 07 2018 10 2018 01 2019 04 2019 07 2019 10 2019 01 2020 04 2020 07 2020 10 2020 01 2021 Aktia Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7 Com
Slide 8: Remarkable growth in total loan book continues
Remarkable growth in total loan book continues Total loan book EUR +571 million • Group lending to the public EUR million EUR million and public-sector entities 2,000 7,000 increased by EUR 571 million 7,000 1,800 6,429 to EUR 7,000 (6,429) million. 6,107 5,717 5,839 1,600 6,000 • Aktia’s total new
Slide 9: Aktia's market share in housing loans increased
Aktia’s market share in housing loans increased Banking Business Private customers • Virtual customer work continued during Q4 and the demand for digital services continued to increase • Demand for mortgage loans was stable throughout the year and the digital mortgage loan process with a fast indica
Slide 10: Our strategic priorities
Our strategic priorities 2023 Win in asset management Acquire new customers in growing cities Drive operational efficiency to capitalise on our challenger position Banking & Insurance Aktia Q4 2020 Results Presentation 18 February 2021 10
Slide 11: The financial targets 2023
The financial targets 2023 Comparable Return on Comparable Common Equity operating profit Equity (ROE) cost-to-income Tier 1 capital ratio EUR 100 million above 11% ratio under 0.60 (CET1) 1.5–3 percentage points over the regulatory requirement 1–12/2020; 31 December 2020; 1–12/2020; 31 December 202
Slide 12: Corporate responsibility programme
Corporate responsibility programme In 2020, Aktia updated indicators and actions to group’s corporate Aktia’s corporate responsibility programme responsibility programme and action plan for 2021–2023. Aktia reports every six months on the selected indicators of our corporate responsibility programme
Slide 13: Financial overview
Aktia Q4 2020 Results presentation Financial overview Outi Henriksson CFO Aktia Q4 2020 Results Presentation 18 February 2021 13
Slide 14: Financial performance recovered quickly
Financial performance recovered quickly Q-o-Q Comparable operating profit Comparable operating income EUR million EUR million 19.8 60 57.0 19.2 55.2 54.8 0.6 20 0.3 1.7 1.6 49.4 1.1 10.2 16.5 50 8.3 39.9 0.5 16.0 10.1 4.7 0.6 0.3 15 40 11.6 Other 10.0 6.2 25.8 25.2 24.2 25.4 Other 30 22.9 10 10.5 Ne
Slide 15: Comparable operating profit and income
Comparable operating profit and income Y-o-Y Comparable operating profit Comparable operating income EUR million EUR million 70 68.2 211.4 5.5 4.7 201.1 200 2.9 60 55.1 30.0 19.9 0.6 50 150 Other 33.6 Other 24.1 40 99.1 97.6 Net income from Asset life insurance 30 Management 100 Net commission Banki
Slide 16: Comparable operating profit
Comparable operating profit * Organic growth in net interest income (EUR 5.1 million), net 1–12/2020 vs 1–12/2019 +4% underlying profit growth commission income (EUR -1.5 million), net income from life (without unrealised value changes)* insurance (EUR 1.8 million), other income (EUR -0.9 million) a
Slide 17: Strong recovery of assets under management continued
Strong recovery of assets under management continued Asset Management, Aktia UI 1–12/2020 Asset Management, domestic 1–12/2020 EUR million EUR million AUM Market Net AUM Market Net AUM AUM Market Net AUM Market Net AUM 12/2019 changes subscriptions 6/2020 changes subscriptions 12/2020 12/2019 change
Slide 18: Strong recovery of assets under management continued
Strong recovery of assets under management continued Banking Business, Retail 1–12/2020 EUR million AUM Market Net AUM Market Net AUM 12/2019 changes subscriptions 6/2020 changes subscriptions 12/2020 Net AUM Market Net AUM Market subscriptions 3/2020 changes subscriptions 9/2020 changes Aktia Q4 20
Slide 19: Growth investments increased staff costs y-o-y
Growth investments increased staff costs y-o-y 1–12/2020 vs 1–12/2019 EUR million Comparable staff costs EUR 2.0 Staff costs: million higher than a year ago Comparable staff costs increased by 3% to EUR 68.8 (66.8) million. Growth investments increased staff costs from last year IT expenses: IT expe
Slide 20: Impairments for future expected credit losses
Impairments for future expected credit losses Change in expected credit losses (ECL) 1–12/2020 EUR million Impairment of credits and other • Macroeconomic assumptions have commitments 1–12/2020 EUR -4.0 million been updated in the 4Q, no significant impact • Impairment of credits and other commitmen
Slide 21: Financial summary Q4 and YTD
Financial summary Q4 and YTD EUR million Q42020 Q42019 , % 1-12/2020 1-12/2019 , % Total operating income 57.0 55.2 3% 201.1 221.4 -9% Net interest income 20.8 19.3 8% 80.7 77.6 4% Net commission income 25.4 25.8 -2% 97.6 99.1 -1% Net income from life insurance 10.2 8.3 24% 19.9 30.0 -34% Other in
Slide 22: Structure of lending and deposits
Structure of lending and deposits 31 December 2020 (31 December 2019) Lending Deposits Total EUR 7,000 (6,429) million Total EUR 4,466 (4,060) million 0% (1%) 7% (6%) EUR 30 EUR 314 1% (1%) 13% (11%) (34) million (256) million EUR 66 EUR 908 (54) million (738) million 21% (18%) EUR 946 14% (12%) (72
Slide 23: Balance sheet total increased to EUR 10,573 million
Balance sheet total increased to EUR 10,573 million 31 December 2020 Total assets Total liabilities and equity EUR million EUR million 10,573 10,573 9,697 Deposits from the public 10,000 9,697 10,000 Lending to the public 4,466 Liabilities to central 8,000 and public-sector 8,000 banks and credit 4,
Slide 24: CET1 on a solid level above the target range
CET1 on a solid level above the target range Capital Adequacy • At the end of the period, the Bank Group’s Common CET1 Equity Tier 1 (CET1) capital ratio was 14.0%. EUR million % • The maximum proposed 2020 dividend, EUR 0.43 per share, 800 24 has been deducted from the CET1 capital, which affected
Slide 25: Funding activities remained high
Funding activities remained high • During the year 2020 Aktia has been a very active issuer in the senior preferred market. Aktia has completed over 30 transactions under the EMTN program. The total volume is over EUR 800 million with maturities in the range of 2–15 years. • Aktia is considering to
Slide 26: Appendices
Aktia Q4 2020 Results presentation Appendices Aktia Q4 2020 Results Presentation 18 February 2021 26
Slide 27: Key figures Q4 2020
Key figures Q4 2020 (Q4 2019) Net interest income +8% EUR 20.8 (19.3) million Net commission income -2% EUR 25.4 (25.8) million Total operating income +3% EUR 57.0 (55.2) million Comparable operating income +3% EUR 57.0 (55.2) million Total operating expenses +3% EUR -36.4 (-35.3) million Comparable
Slide 28: Net interest income mix
Net interest income mix EUR million 30 23.4 22.9 25 21.5 21.8 23.5 3.9 3.6 20.7 0.7 21.0 20.7 20.8 3.5 3.4 19.6 19.3 19.7 20.1 20.0 0.6 3.3 3.3 2.8 2.0 19.4 19.2 0.6 0.6 1.5 20 1.3 1.2 0.8 0.7 0.5 1.7 1.6 4.6 3.8 1.7 1.6 1.5 1.4 1.4 3.4 3.1 2.4 2.2 2.0 1.6 15 10 19.4 19.5 20.6 17.9 17.3 17.4 17.7 18
Slide 29: Net commission income mix
Net commission income mix EUR million ◼ Other ◼ Insurance 30 ◼ Lending ◼ Card, payment services and borrowing 25.8 25.2 25.4 1.3 24.2 ◼ Mutual funds, asset management 25 1.3 1.5 0.6 0.6 22.9 0.3 and securities brokerage 2.2 1.3 2.1 1.3 0.4 2.4 0.1 2.3 20 2.3 6.1 6.0 5.4 5.5 5.6 15 10 15.7 15.2 14.7
Slide 30: The good bank. And a great asset manager.
The good bank. And a great asset manager. Investor Relations contacts: Lotta Borgström Director, Investor Relations and Communications +358 10 247 6838 lotta.borgstrom@aktia.fi