Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q2 2021 Earnings Presentation
32 slides from Aktia Bank Plc Class A's earnings presentation, Aug 5, 2021
Slide 1: Q2 Results
5 AUGUST 2021 Q2 Results Mikko Ayub CEO
Slide 2: Record-strong second quarter
Record-strong second quarter EUR million 2Q2021 2Q2020 % • The comparable operating profit at an all-time Total operating income 73.3 54.8 34% high Net interest income 27.7 20.1 37% Net commission income 31.7 22.9 39% • Strong increase in all income categories Net income from life insurance 10.5 10
Slide 3: Comparable operating profit 2017–2Q2021
Comparable operating profit 2017–2Q2021 EUR million 80 70 68.2 65.4 59.9 60 55.1 50 Q4 19.8 42.9 40 30 Q2 26.0 Q3 16.0 20 10 Q2 16.5 Q1 16.9 0 Q1 2.8 2017 2018 2019 2020 2021 Aktia Q2 2021 Results Presentation 5 August 2021 3
Slide 4: Outlook 2021
Outlook 2021 Aktia maintains its previous outlook in which the comparable operating profit for 2021 is expected to be considerably higher than during 2020 (maintained) • The increase in net interest income is expected to continue owing to strong volume increase and reasonable financing expenses • Th
Slide 5: Dividend 2020
Dividend 2020 On 27 July 2021, Financial Supervisory Authority (FIN-FSA) informed that its recommendation on the distribution of credit institutions’ profits will not be extended beyond 30 September 2021. Aktia’s Board of Directors will make the decision on the dividend for 2020 in October. The deci
Slide 6: Asset Manangement
Asset Manangement • Aktia acquired Taaleri's wealth management business − the transaction was completed on 30 April 2021 • The transaction brought together two strong players • Private Banking transferred to the Asset Management business area and reported segment • Strong sales particularly to priva
Slide 7: Taaleri wealth management included in AuM during Q2
Taaleri wealth management included in AuM during Q2 Assets under management excluding custody (AuM) EUR million 15,582 16,000 14,000 12,000 9,853 10,447 10,379 10,000 8,353 7,628 8,000 6,234 5,597 6,000 4,000 2,000 0 2015 2016 2017 2018 2019 2020 31 Mar 2021 30 Jun 2021 Institutional assets, includi
Slide 8: Taaleri integration proceeding as planned
Taaleri integration proceeding as planned • Taaleri integration has proceeded according to plans and timetable • Focus on income and cost synergy targets. The work in terms of these has progressed well • Organisations unified, a more comprehensive product selection to all customers • The additional
Slide 9: Banking Business
Banking Business • Quarterly sales of mortgages reached all-time high levels • The improved credit process and quicker indicative offer for mortgages have enabled the growth • Expected credit losses remained on a low level • Corporate customer business continued to grow strongly: active acquisition
Slide 10: Growth in total loan book continues
Growth in total loan book continues Total loan book EUR +160 million (+2%) Q-o-Q EUR million EUR million 7,400 700 7,299 7,300 600 7,200 7,139 7,100 500 7,000 7,000 400 6,900 300 6,780 6,800 6,694 6,700 200 6,600 100 6,500 0 6,400 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 New lending Total loan book A
Slide 11: Life Insurance
Life Insurance • Strong market development together with successful new sales of unit-linked products contributed to good result in Life Insurance • The risk life new sales showed steady growth during the second quarter • Preparation for broadening the investment alternatives in the unit-linked insu
Slide 12: Aktia makes determined efforts to develop CSR
Aktia makes determined efforts to develop CSR Highlights in 1–6/2021 Clarified responsibilities • Markus Lindqvist appointed Director, Sustainability Governance • Updated responsible investment policy and implemented first obligations under the EU Sustainable Finance Disclosure Regulation Impact inv
Slide 13: Aktia's Capital Markets Day
Aktia’s Capital Markets Day Aktia arranges a Capital Markets Day for investors, analysts, bank representatives and media in Helsinki on 8 September 2021. Aktia’s CEO Mikko Ayub, CFO Outi Henriksson and other members of the Group’s Executive Committee will present at the event. Information on registr
Slide 14: Financial overview
Aktia Q2 2021 Results presentation Financial overview Outi Henriksson CFO Aktia Q2 2021 Results Presentation 5 August 2021 14
Slide 15: Comparable operating profit and income
Comparable operating profit and income Q-o-Q Comparable operating income Comparable operating profit EUR million EUR million 80 73.3 30 70 3.4 26.0 57.9 10.5 60 57.0 25 54.8 0.6 1.6 1.6 49.4 19.8 6.8 50 39.9 0.5 10.2 9.9 20 10.1 4.7 Other 16.5 0.3 31.7 16.0 16.9 Centralised 40 0.7 2.1 functions and
Slide 16: Comparable operating profit
Comparable operating profit 1–6/2021 vs 1–6/2020 +68% underlying profit growth (without unrealised value changes)* EUR million 42.9 Comparable Other net interest Actuarially Other net income Operating Other operating profit income calculated result from investments expenses 1–6/2020 (Net income from
Slide 17: 2Q and 1H comparable operating profit adjusted for certain major items
2Q and 1H comparable operating profit adjusted for certain major items 2Q2021 1H2021 EUR million EUR million 35.0 60.0 30.4 30.0 48.5 26.0 26.7 46.4 50.0 42.9 25.0 23.6 39.2 40.0 20.0 30.0 15.0 20.0 10.0 5.0 10.0 0.0 0.0 Reported Adjusted for Taaleri Adjusted for Taaleri Adjusted for Taaleri Reporte
Slide 18: Taaleri wealth management acquisition related transaction costs
Taaleri wealth management acquisition related transaction costs EUR million 1Q2021 2Q2021 1H2021 Advisory fees total 1.2 1.8 3.1 Transfer tax - 2.0 2.0 Other transaction costs - 0.6 0.6 Total 1.2 4.4 5.6 Transaction costs are included in the comparable operating profit. Aktia Q2 2021 Results Present
Slide 19: Assets under Management – Net subscriptions and market changes
Assets under Management – Net subscriptions and market changes Asset Management, Aktia UI Q-o-Q Asset Management, domestic Q-o-Q EUR million EUR million AUM Market Net AUM Market Net AUM AUM Market Net AUM Market Transaction Market 6/2020 changes subscriptions 12/2020 changes subscriptions 6/2021 6/
Slide 20: Assets under Management – Net subscriptions and market changes
Assets under Management – Net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million AUM Market Net AUM Market Organisational Market 6/2020 changes subscriptions 12/2020 changes adjustments changes Net AUM Market Net AUM Net AUM subscriptions 9/2020 changes subscriptions 3/2021
Slide 21: Comparable operating expenses
Comparable operating expenses 1–6/2021 vs 1–6/2020 EUR million Staff costs: The comparable staff costs increased by 10% to EUR 38.3 (34.8), which is mainly 84.6 attributable to Taaleri’s wealth management acquisition with approximately 100 new employees. IT expenses: IT expenses increased by 17% to
Slide 22: Impairments for future expected credit losses
Impairments for future expected credit losses Change in expected credit losses (ECL) 1–6/2021 Impairment of credits and other EUR million commitments 1–6/2021 EUR –3.6 million • Impairments on credits and other commitments increased to EUR -3.6 (-3.2) million, of which the change in the allowance fo
Slide 23: Financial summary Q2 and YTD
Financial summary Q2 and YTD EUR million 2Q2021 2Q2020 % 1-6/2021 1-6/2020 , % Total operating income 73.3 54.8 34% 131.2 94.7 39% Net interest income 27.7 20.1 37% 49.0 39.8 23% Net commission income 31.7 22.9 39% 56.8 48.1 18% Net income from life insurance 10.5 10.1 4% 20.4 4.9 315% Other incom
Slide 24: Structure of lending and deposits
Structure of lending and deposits 30 June 2021 (31 December 2020) Lending Deposits Total EUR 7,299 (7,000) million Total EUR 4,560 (4,466) million 1% (0%) 8% (7%) EUR 54 EUR 350 2% (2%) 13% (13%) (30) million (314) million EUR 68 EUR 934 (66) million (908) million 20% (21%) EUR 888 15% (14%) (946) m
Slide 25: Balance sheet total increased to EUR 11,236 million
Balance sheet total increased to EUR 11,236 million 30 June 2021 Total assets Total liabilities and equity EUR million EUR million 11,236 11,236 10,573 10,573 Deposits from the public 10,000 10,000 4,560 Lending to the public 4,466 Liabilities to central 8,000 and public-sector 8,000 banks and credi
Slide 26: CET1 Capital ratio
CET1 ratio close to the upper limit of the target Capital Adequacy • At the end of the period, the Bank Group’s Common Equity Tier CET1 1 (CET1) capital ratio was 10.8% % % • Target range at the end of period 9.2–10.7% 20 • AT1 requirements now covered with AT1 capital 18 16.5 15.9 9 15.6 15.7 15.6
Slide 27: Funding activities
Funding activities • During the Q2 2021 Aktia completed one private placement transaction. During the first half of the year 2021 Aktia Bank has issued 12 senior preferred debts under the EMTN program. The total volume being approximately EUR 195 million with maturities in the range of 3–10 years. •
Slide 28: Appendices
Aktia Q2 2021 Results presentation Appendices Aktia Q2 2021 Results Presentation 5 August 2021 28
Slide 29: Net interest income mix
Net interest income mix EUR million 30 27.7 23.4 22.9 3.8 25 21.5 21.8 23.5 3.9 3.6 20.7 0.7 21.0 20.7 20.8 21.3 0.5 3.5 3.4 19.6 19.3 19.7 20.1 20.0 0.6 0.5 1.4 3.3 3.3 2.8 2.0 19.4 19.2 0.6 0.6 1.5 1.4 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 20.6 20.7
Slide 30: Net commission income mix
Net commission income mix EUR million ◼ Other 35 ◼ Insurance 31.7 ◼ Lending 1.4 ◼ Card, payment services and borrowing 30 0.5 2.7 ◼ Mutual funds, asset management 25.4 25.0 and securities brokerage 25 24.2 22.9 1.5 1.3 5.5 1.3 0.3 0.3 1.3 0.4 2.4 2.2 0.1 2.3 20 2.3 5.4 5.4 5.5 5.6 15 21.6 10 14.7 15
Slide 31: 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 1–6/2021; 30 June 2021; 1–6/2021; 30 June 2021; EUR 42.
Slide 32: 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