Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Debt Investor Presentation (2018)
25 slides from Aktia Bank Plc Class A's debt investor presentation, 2018
Slide 1: Debt Investor Presentation
Debt Investor Presentation Timo Ruotsalainen, Head of Treasury Interim Report 3Q 2018 1
Slide 2: Aktia Bank Plc Executive Summary
Aktia Bank Plc Executive Summary Retail bank with focus on growth areas in Finland Provides banking services to private customers, small and middle sized companies and institutional investors. Business supported by own branch network and digital services Households accounts for 79 % of the loan port
Slide 3: Aktia overview and recent result
Aktia overview and recent result • Implementation of the 2022 strategy continues. • Asset Management: Expanding to the international market • Very good financial performance in June – September 2018. 3
Slide 4: Background and strategy
Background and strategy Aktia is the oldest deposit bank in Finland. 1826 Helsinki Savings Bank started its business operations. 1991 Today’s Aktia was born when Helsinki Savings Bank merged with seven other savings banks. More mergers followed until the new millennium. 2009 Aktia's shares were list
Slide 5: Aktia in numbers
Aktia in numbers Aktia is a local Finnish bank serving private customers, small and middle sized corporates and institutional investors. Aktia's share (AKTIA) is listed on the list of Nasdaq Helsinki Ltd. Aktia Bank, Jan-Sep 2018: Operating income: EUR 162,4 million C/I: 0,64 CET1: 16,6% 350,000 Ope
Slide 6: Transformation proceeding well
January-September 2018: Transformation proceeding well New services and better economic governance and reporting with the new core banking system. New products, customer concepts and digitalisation initiatives are introduced. • Combination of R and A shares. Make use of digitalisation • New segment
Slide 7: Core banking system in place and in use
Core banking system in place and in use Digital banking • The new core banking system introduced in summer 2017 Data and analytics • The core banking system enables combined automated processes and robotics in our service solution eg. automated loan decisions. • Versatile Mobile Bank allows eg. fund
Slide 8: Aktia's customer groups according to new strategy
Aktia’s customer groups according to new strategy 70 % of Finnish citizens would prefer Financial Advisory 40% of Aktia’s customers have a personal PRODUCT PREFERENCE PREMIUM PRIVATE BANK OWNER MANAGED financial advisor – the INSTITUTIONS CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS ENTERPRISES highest p
Slide 9: Growing Asset Management
Award winning wealth management: Growing Asset Management EUR billion ASSETS UNDER MANAGEMENT 12 000 INSTITUTIONAL 11 500 CLIENTS AUM • EMD funds: The institutional 10 881 11 000 customer base becoming 5.9 10 500 increasingly international. 10 000 EUR billion 9 679 • Equity funds: New products and 9
Slide 10: Aktia – the debt investment case
Aktia – the debt investment case Moody’s Standard & Poor’s Senior loan: A1 / P-1, stable outlook Senior loan: A- / A-2, stable outlook Covered bonds: Aaa Complete rating reports on www.aktia.com/en/velkasijoittajat/luottoluokitus 10
Slide 11: CET1 on a solid level
Capital adequacy and Capital requirements: CET1 on a solid level • Aktia’s Common Equity Tier 1 (CET1) Capital is at a good Capital Requirement level at 16.6 % (18.0 % on 31 December 2017) • Target over time is to exceed the regulative requirement CET1 % 8.0% with 150-300 basis points Pillar 1 min r
Slide 12: Finnish households a key business driver
Structure of lending and deposits: Finnish households a key business driver Public entities and non-profit Public entities and non-profit Housing organisations organisations associations 1% 4% 9% SMEs SMEs 11% 22 % Lending Deposits EUR 6 029 million EUR 4 025 million (2017: 5 839) (2017: 4 119) Hous
Slide 13: Prudent and low-risk lending policy
Stable long-term trend in non-performing loans: Prudent and low-risk lending policy Aktia Bank operates under strict Non-performing loans more than 90 days overdue origination criteria: 100 • Identification of the customer mandatory 0,79 0,78 0,83 0,80 0,800,79 0,79 0,78 • Responsible lending: custo
Slide 14: High-quality liquidity portfolio
High-quality liquidity portfolio At the end of September 2018 the Bank Group’s liquidity buffer was approximately equivalent to the estimated outgoing cash flow of finance from the wholesale market for 25 months. The Liquidity Coverage ratio (LCR) was 118%. 30.9.2018 31.3.2017 3% EUR million 1 561 1
Slide 15: Sound funding profile
Sound funding profile Customers deposits and covered bonds dominate Debt maturity profile EUR million Subordinated debt 3% REPOs & ECB 800 8% 600 Senior debt MEUR 814 11% 400 Customer deposits EUR 7,247 MEUR 4 025 million 56% 200 Covered bonds MEUR 1,648 0 23% 2019 2020 2021 2022 2023-> Covered Bond
Slide 16: Aktia Bank as covered bond issuer
Aktia Bank as covered bond issuer • The Aktia Bank mortgage loan portfolio is of very high quality: ✓ Only prime residential mortgage loans ✓ Collateral located in Finland ✓ Low average LTV Aktia Bank operates under the • Aktia Bank covered bonds are CRR & UCITS, ECB repo and legislation as mortgage
Slide 17: Cover pools
Cover pools September 2018 Cover Pool 2 Cover Pool 1 Total asset pool EUR 2,183 million EUR 202 million No substitute assets No of loans / average loan 36,429 / EUR 59,925 2,630 / EUR 76,737 balance First ranking residential mortgages First ranking residential mortgages Types of loans and pledges of
Slide 18: The Finnish Economy
The Finnish Economy Strong but very export driven Economy 18
Slide 19: The Finnish Economy: Export driven growth
The Finnish Economy Export driven growth Key facts about Finland • Member of EU and Euro area • Population: 5.5 million • Area: 338 430 sq. km • GDP per capita EUR 38 959 (2016) • Credit ratings: Aa1 (stable) / AA+ (stable) / AA+ (stable) 21
Slide 20: The Finnish Economy: Growth continues
The Finnish Economy Growth continues 22
Slide 21: The Finnish Economy: Employment and private debt
The Finnish Economy Employment rate, 15-64 year olds Private debt, % of GDP 80 225 79 78 > A ” 76 8 4 B n n 70 cy 68 or 66 65 23 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2018 201 2015 z016 2017 2018 2019 ‘Sources: Aktia and Macrabond Sweden Denmark Finiand Frans | Germany ‘Sources
Slide 22: Macroeconomic environment
Macroeconomic environment All is well, for now. World exports Developing economies World Developed economies Sources: Aktia and Macrobond 24
Slide 23: Finnish housing market
Finnish housing market Solid and stable market 25
Slide 24: Courageously. Skilfully. Together.
Courageously. Skilfully. Together. 24
Slide 25: Contacts and additional information
25 Contacts and additional information Timo Ruotsalainen Outi Henriksson Head of Treasury CFO Tel. +358 10 247 7211 Tel. +358 10 247 6236 timo.ruotsalainen@aktia.fi outi.henriksson@aktia.fi Debt investor information: http://www.aktia.com/en/velkasijoittajat (website) http://www.aktia.com/en/julkaisu