Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Aktia Pankki — Q3 2024 Earnings Presentation
28 slides from Aktia Bank Plc Class A's earnings presentation, Nov 6, 2024
Slide 1: Aktia Q3 2024 Results Presentation
6 NOVEMBER 2024 3 a= Aleksi Lehtonen, CEO Karri Varis, Interim CFO. Aktia
Slide 2: Q3 highlights
Aktia 03/2024 Results Presentation Q3 highlights Financial performance remained stable: comparable operating profit EUR 31.5 million, somewhat higher than last year (31.0). Comparable return on equity (ROE) 15.0% and comparable cost/income ratio 0.56. Net commission income 3% higher than last year.
Slide 3: Solid performance continued
Akt la 03/2024 Results Presentation 6/11/24 3 Solid performance continued Comparable operating profit 2020-2024 EUR million 1247 120.0 104.8 100.0 96.2 87.4 Q4 25.6 80.0 65.2 60.0 55.1 ese 40.0 02256 20.0 0.0 : : : : 1 2020 2021 2022 2023 2024 Restated according to the accounting standard IFRS 17
Slide 4: Business areas
Aktia Q3/2024 Results Presentation 6/11/24 Business areas
Slide 5: Positive trend in asset management
Q3/2024 Results Presentation Aktia Asset Management Banking Life Insurance 6/11/24 5 Positive trend in asset management ¢ AuM increased thanks to positive net subscriptions and favourable market development. ¢ Net subscriptions to institutions remained strongly positive. Private Banking customers' n
Slide 6: Strong demand for investment solutions, encouraging signs in the housing market
Aktia Q3/2024 Results Presentation Asset Management Banking Life Insurance 6/11/24 6 d d for i m luti d Strong emand Tor investment solutions, an encouraging signs in the housing market Sales of investment solutions Development of the Group’s credit portfolio Q-o-Q remained strong among curmiion EUR
Slide 7: Aktia Life Insurance again delivered a strong result
Aktia 3/2024 Results Presentation Asset Management Banking Life Insurance 6/11/24 7 Aktia Life Insurance again delivered a strong result * Demand for risk life Development of the actuarially calculated result Q-o-Q insurance policies and . . . EUR milli investment-linked insurances men remained stro
Slide 8: Sustainability-driven success for the leading wealth manager bank
Aktia 03/2024 Results Presentation 6/11/24 8 Sustainability-driven success for the = 2025 target achieved leading wealth manager bank Prosperity & Planet People Principles of Governance Share of SFDR amtcle 8 and 9 classified funds QO Siqni Flame Index* a3/2024 3/2023 Antias FSC ratings indust ‘arge
Slide 9: Performance vs financial targets 2025
Aktia Q3/2024 Results Presentation Performance vs financial targets 2025 6/11/24 Comparable operating profit above EUR 120 million 1-9/2024: EUR 96.2 million 1-12/2023: EUR 104.8 million Comparable return on equity (ROE) above 12% 30 September 2024: 15.6% 31 December 2023: 13.6% Comparable cost-to-i
Slide 10: Outlook 2024 (unchanged)
Aktia 3/2024 Results Presentation Outlook 2024 (unchanged) Aktia's comparable operating profit for 2024 is expected to be higher than the EUR 104.8 million reported for 2023 The outlook has been prepared based on the following expectations: ¢ Despite market uncertainty and a probable decline in inte
Slide 11: Financial overview
Financial *\ overview \ Aktia
Slide 12: Financial summary
Aktia Q3/2024 Results Presentation Financial summary EUR million Q3/2023 A% Q2/2024 % Total operating income 761 74.3 2% 76.7 -1% Net interest income 36.1 38.6 TW% 38.8 T% Net commission income 30.9 30.0 3% 30.8 0% Net income from life insurance 89 51 TA% TA 21% Other income 0.2 06 58% -0.3 -180% To
Slide 13: Stable operating income
Aktia 03/2024 Results Presentation 6/11/24 13 Stable operating income * Net commission income was Comparable operating income, Q-o-Q 3% higher than last year EUR million thanks to a higher net income 98 from funds and card i 713 : operations. 8 U3 06 os 0s 76.7 761-02 . . . La “ 77 7A * Net income f
Slide 14: Net commission income grew from last year
Akt la 03/2024 Results Presentation 6/11/24 Net commission income grew from last year EUR million 35 oF 30.0 30.1 30.8 30 7 19 25 F 59 Other 20 F Lending 3.5 Card, payment services and borrowing 15 ™ Asset management and securities brokerage 10 ™ Mutual funds 5 (¢) Q3/2023 Q4/2023 Q1/2024 Q2/2024 Q3
Slide 15: AuM: net subscriptions and market changes
Aktia 03/2024 Results Presentation 6/11/24 15 AuM: net subscriptions and market changes Total AuM, Q-0-Q EUR million 146 14,308 os i — 324 14,080 198 14,108 mm | m “147 13,559 Ll AUM 9/2023 AUM 12/2023 AUM 3/2024 AUM 6/2024 AUM 9/2024 MiNet subscriptions Ml Market changes
Slide 16: Composition of the Group net interest income
Aktia 03/2024 Results Presentation 6/11/24 16 Composition of the Group net interest income EUR million 394 38.8 110 } 38.6 38.2 364 @ Lendin 60 + i = Deposits ™ Covered bonds Senior financing 10 + Liquidity portfolio MH TLTRO loan 1 Other (mainly deposits in Bank of Finland) 40 t go l Q3/2023 Q4/202
Slide 17: Higher IT expenses, but lower personnel costs
Aktia Comparable operating expenses increased by 5% due to increased IT investments. IT expenses increased due to continued investments in customer experience, banking system functionality, information security and regulatory processes. Q3/2024 Results Presentation 6/11/24 7 . Higher IT expenses, bu
Slide 18: Credit loss provisions were EUR 1.8 million
Aktia ¢ For the major part, our loan book consists of loans to households supported by residential or real estate securities. * Credit loss provisions in Q3 (EUR 18 million) decreased compared to last year. ¢ Annualised net credit losses (8 bps) remained at a moderate level. Q3/2024 Results Presenta
Slide 19: CET1 ratio improved to 11.9%
Aktia 03/2024 Results Presentation 6/1/24 19 CET1 ratio improved to 11.9% CET1 % % ng 12 10.6 10.8 na 1.0 10 1.3 NS nS 10 88 86 6 7 1 7 7 7 7 1 3 4 2 0 (0) 30 Sep 2022 = 31 Dec 2022 31Mar 2023. = 30 Jun 2023. © 30 Sep 2023. 31Dec 2023. = 31Mar2024 30Jun2024 30Sep 2024 CET! Capital ratio, Ihs CET! re
Slide 20: Funding activities
Q3/2024 Results Presentation Funding activities aR : ’ In September, Aktia successfully refinanced a callable Tier 2 EUR 70 million note with new EUR 70 million Tier 2 issue. The active investor work contributed to finding 35 investors predominantly from UK/Ireland, Nordics and France. The issue was
Slide 21: Building wealth for our customers and society
Lf TX} in] a} Building wealth for our customers and society Investor Relations contacts: Oscar Taimitarha Director, Investor Relations +358 40 562 2315 oscartaimitarha@aktia fi Aktia
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Slide 23: AuM: net subscriptions and market changes
Akt la 03/2024 Results Presentation 6/11/24 23 AuM: net subscriptions and market changes Asset Management, Private Banking Q-o-Q Asset Management, Domestic institutions Q-o-Q EUR million EUR million 115 4,549 42° 4,553 67 6,416 4506 05 52 “41-02 150 6,298 26 125 6,234 4398 05. 04 4,407 |_| 398 ey 6,
Slide 24: AuM: net subscriptions and market changes
Aktia Q3/2024 Results Presentation 6/11/24 24 AuM: net subscriptions and market changes Asset Management, Aktia UI Q-0-Q Asset Management, External channels Q-o-Q EUR million EUR million 11 346 335 09, 336 i 14332 | “01 o28, = 902 29 913 05 24 02 = -18 “17 05770 00 768 -148 03 ‘AUM AUM ‘AUM AUM ‘AUM
Slide 25: Banking Business, Retail and Sound funding profile
Aktia 03/2024 Results Presentation 6/11/24 25 AuM: net subscriptions and Sound funding profile market changes Banking Business, Retail Q-o-Q Capital market 48% Other long- term loans 08% EUR million Covered bonds 21,8% 28 2,253 = 81 2,132 _ Total . i 9,16 280 2.027 Customer 9 deposits ane Senior deb
Slide 26: Balance sheet total EUR 11,975 million
Aktia Q3/2024 Results Presentation 6/11/24 26 Balance sheet total EUR 11,975 million Total assets EUR million 14,000 12,000 10,000 8,000 6,000 4,000 2,000 12,038 31 Dec 2023 11,975 30 Sep 2024 ™ Lending to the public and public-sector entities = Liquidity portfolio § Life insurance assets incl. Unit
Slide 27: Households account for the majority of lending and deposits
Akt la 03/2024 Results Presentation 6/11/24 27 Households account for the majority of lending and deposits Lending to the public and public sector entities Deposits from the public and public sector entities 76; 240; 1,170; 1% 64; 6% 15% 1% ™ Households ™ Households ™ Corporates ™ Corporates Total 7
Slide 28: Aktia
Aktia