Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q2 2022 Earnings Presentation
31 slides from Aktia Bank Plc Class A's earnings presentation, Aug 5, 2022
Slide 1: Q2 2022 Results
Q2 Resul Mikko Ayub, CEO Outi Henriksson, CFO
Slide 2: Highlights Q2 2022
Aktia 2 2022 Results Presentation Highlights Q2 2022 * — Interest income from lending increased by 10% with the support of the corporate customer business. Average margin for the entire loan book improved. * Nil continued to develop well; the decrease from last year is explained by the accumulated i
Slide 3: Outlook 2022 (updated 15 July 2022)
Akt la Q2 2022 Results Presentation 5/8/22 3 Outlook 2022 cupdated15 July 2022) New outlook for 2022: Aktia's comparable operating profit in 2022 is expected to be approximately at the same level as in 2021. The key uncertainties related to the realisation of the outlook include the development of t
Slide 4: Outlook 2022
Akt la Q2 2022 Results Presentation 5/8/22 4 Outlook 2022 * The net interest income growth is expected to remain strong, especially in the corporate customer segment, due to active pricing and expected volume growth. The positive impact of the increasing short-term reference rate on private customer
Slide 5: Business in good shape despite the market decline
Akt la Q2 2022 Results Presentation 5/8/22 5 Business in good shape despite the market decline 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 6: Q2 2022 Results Presentation
Aktia 2 2022 Results Presentation
Slide 7: Rapid increase in housing loan interest rates
Aktia Q2 2022 Results Presentation Banking 5/8/22 7 Rapid increase in housing loan interest rates Average interest rate on new housing loans in Finland Percent 16 16 % 15 14 13 12 1 10 09 os O7 06 Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2019 2020 2021 2022 Source:
Slide 8: Growth driven by corporate lending continues
Aktia Q22022Results Presentation Banking 5/8/22 8 Growth driven by corporate lending continues * Interest income from lending increased by Development of credit portfolio Q-o-Q 10%, due to continued growth in corporate 7 EUR million customer business. EUR million 7698 wage . 700 7,607 * Acquisition
Slide 9: Earn award points
Earn award points with every purch
Slide 10: Aktia Wealth Plan fully launched
Aktia Q22022 Results Presentation Banking 5/8/22 10 Aktia Wealth Plan Vaurastumis- fully launched suunnitelma y) ¢ Aktia Wealth Plan is a new, standard part of our housing loan offering. It is the main way to offer customers a wide range of asset management, life insurance and banking products. Kiit
Slide 11: Asset Management: Net subscriptions turned positive
Q2 2022 Results Presentation Aktia Asset Management 5/8/22 n Net subscriptions turned positive * Net subscriptions for Q2 were positive and amounted to EUR 111 million. Net sales increased in domestic and foreign institutions, as well as Private Banking customers. * AuM decreased to EUR 139 billion
Slide 12: Rapid increase in rates continued to weigh down investment portfolio
Aktia Q22022 Results Presentation _Life Insurance 5/8/22 12 Rapid increase in rates continued to weigh down investment portfolio Life insurance business continued to develop well * Continued positive net inflow in unit linked sales * Steady growth in risk life insurance premium income Net income fro
Slide 13: Pe i. Ge tee OO : ies x ——_ q
Pe i. Ge tee OO : ies x ——_ q ee > cs ans ».. << x ° : a 7 Aktia © ~~ Bzi2022°RyltS Presentation, , > ‘ of 5/8/22, 13 4 on . . af
Slide 14: Focus on guiding customers to our focal point
Akt la Q2 2022 Results Presentation 5/8/22 4 Focus on guiding customers to our focal point e Growth in our strategic sweet-spot Offering comprehensive wealth management to our target segments, including wealth plans, financing, asset management services, personal life insurance and convenient bankin
Slide 15: Financial targets 2025
Aktia Financial targets 2025 Q2 2022 Results Presentation 5/8/22 Comparable operating profit above EUR 120 million 1-6/2022; EUR 38.0 million Comparable return on Equity (ROE) above 12% 30 June 2022; 94% Comparable cost-to-income ratio under 0.60 1-6/2022; 0.69 Common Equity Tier 1 capital ratio (CE
Slide 16: Aktia signed the UN Principles for Responsible Banking
Aktia Q2.2022 Results Presentation 5/8/22 Aktia signed the UN Principles for Responsible Banking 16 Actions during H1: Performance of key indicators ° Aktia signed the UN Principles for Responsible from Aktia’s corporate Banking and became a member of UNEP FI responsibility programme ° a . . . . Akt
Slide 17: Slide 17
Slide 18: Financial summary Q2
Aktia Q2 2022 Results Presentation Financial summary Q2 EUR ion 2Q2022 292021 Total operating income 716 73.3 -2% 130.6 131.2 0% Net interest income 258 277 T% 50.9 490 4% Net commission income 316 317 0% 63.0 56.8 1% Net income from life insurance 127 10.5 21% 45 204 -29% Other income 14 34 59% 2.2
Slide 19: Solid business performance continued
Akt la Q2 2022 Results Presentation 5/8/22 19 Solid business performance continued * NII growth driven by corporate lending; the Comparable operating income, Q-o-Q decrease from last year is explained by the booking of the accumulated negative EUR million interest on central bank financing (TLTRO 80
Slide 20: Increased operating expenses driven by acquisition of Taaleri wealth management
Q2 2022 Results Presentation Aktia 5/8/22 20 Increased operating expenses driven by acquisition of Taaleri wealth management Comparable income 1-6/2022 vs 1-6/2021 EUR million 1312 18 Net -5.9 Net interest | Commission -2.8 income income Net income Other from life operating insurance income 130.6 Co
Slide 21: Underlying profit increased by 3%
Aktia EUR million 42.9 Q2 2022 Results Presentation 5/8/22 21 Underlvyi fit i d by 3% Comparable operating profit 1-6/2022 vs 1-6/2021 Actuarially calculated result. 1.9 (Net income Hie Insurance) 6.9 Net. life insurance} -0.. 1 commission changeinth 0.9 Net interest income life nsurance income He i
Slide 22: Reservations for expected credit losses
Aktia * Reservations for expected credit losses increased by EUR 2.4 million in Q2 2022, totaling at EUR -2.1 million in H1 2022. ¢ We have not observed any major new risk concentrations in our credit portfolio. ¢ Athorough review of corporate exposure was carried out during the quarter, no reason f
Slide 23: CET1 ratio 2.7 percentage points above the requirement
Akt la Q2 2022 Results Presentation 5/8/22 23 CET1 ratio 2.7 percentage points above the requirement CeT1 * The CET1 ratio was 10.4% and decreased % % from year end by 0.8 percentage points. 20 18 9 * Aktia Life Insurance Ltd paid a dividend of we | 788 EUR 15 million to the parent company in “ 4.0
Slide 24: Q2 2022 Results Presentation
Q2 2022 Results Pre
Slide 25: Net interest income mix
Aktia 2 2022 Results Presentation 5/8/22 25 Net interest income mix EUR million 35 277 25. 30 254 8 234 244 25 ig a) uy bial Other 20 NE TLTRO loan 5 ™ Hedging with interest rate derivatives Liquidity portfolio 10 = Borrowing and lending 5 ) 14 16 “14 A7 5 2/2021 93/2021 4/2021 Q1/2022 Q2/2022
Slide 26: Net commission income mix
Aktia 2 2022 Results Presentation 5/8/22 26 Net commission income mix EUR million 235 33.7 . 31.6 ou7 31.3 30 25 55 Other 25 Insurance 20 Lending ™ Card, payment services and borrowing 15 Mutual funds, asset management and securities brokerage 10 5 0 2/2021 93/2021 4/2021 Q1/2022 Q2/2022
Slide 27: AuM: net subscriptions and market changes
Akt la Q2 2022 Results Presentation 5/8/22 27 AuM: net subscriptions and market changes Asset Management, Aktia UI Q-0-Q Asset Management, Domestic institutions Q-o-Q EUR million EUR million 2,041 oe eee 2,040 -38 232 7,267 7,174 7 = -21 3g 7,070 —_ 9 1,581 “66 -35 51 -468 || 1401 32 8 1447 6,831 gm
Slide 28: AuM: net subscriptions and market changes
Aktia 2 2022 Results Presentation 5/8/22 28 AuM: net subscriptions and market changes Asset Management, Private Banking Q-0-Q EUR million 162 4,483 10 72. 4,323 | | 4233 17 2 Asset Management, External channels Q-0-Q EUR million AUM AUM AUM AUM AUM 6/2021 9/2021 12/2021 3/2022 6/2022 I Netsubscripti
Slide 29: AuM: net subscriptions and market changes
Akt la Q2 2022 Results Presentation 5/8/22 29 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million 1,996 15) 2,008 13) 1,993 AUM 6/2021 AUM 9/2021 AUM 12/2021 AUM 3/2022 AUM 6/2022 Minet subscriptions ll Market changes
Slide 30: Balance sheet total increased to EUR 11,889 million
Aktia Q2 2022 Results Presentation Balance sheet total increased to EUR 11,889 million Total assets EUR million 11,653 11,889 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 1368
Slide 31: 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