Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q3 2023 Earnings Presentation
28 slides from Aktia Bank Plc Class A's earnings presentation, Nov 9, 2023
Slide 1: Aktia Q3/2023 Results Presentation, 9 November 2023
9 NOVEMBER 2023 = Juha Hammarén, CEO Outi Henriksson, CFO Sy Aktia
Slide 2: Highlights Q3
Aktia 3/2023 Results Presentation Highlights Q3 ¢ Net interest income increased by 64% to EUR 39.5 (24.0) million. ¢ Net commission income was on the previous year’s level at EUR 30.0 (29.9) million. Net subscriptions were EUR -279 million. ¢ Net income from life insurance was EUR 5.1 (19.6) million
Slide 3: 9/11/23,
Aktia 9/11/23,
Slide 4: Average margin continued to increase
Aktia 03/2023 Results Presentation Banking Asset Management Life Insurance 9/11/23 4 Average margin continued to increase Despite challenging market conditions, the loan book grew somewhat. The growth was driven by corporate lending, while housing loan demand remained low. The growth in net interest
Slide 5: Assets under Management decreased slightly
Q3/2023 Results Presentation Aktia Banking Asset Management Life Insurance 9/11/23 5 Assets under Management decreased slightly ¢ Market environment remained volatile and the development on equity markets was very weak. * Central banks continued rate hikes and market expectations for a decrease in i
Slide 6: Insurance service result improved
Aktia 3/2023 Results Presentation Banking Asset Management Life Insurance 9/11/23 6 Insurance service result improved * Sales of risk life insurance developed well Development of the actuarially calculated result Q-o-Q * Sales of investment-linked insurance EUR million policies remained stable. 10,0
Slide 7: Aktia's Sustainability in Q3/2023
Aktia 03/2023 Results Presentation 9/11/23 7 Aktia’s Sustainability in Q3/2023 e@ Enable sustainable prosperity. Weakened biodiversity poses risks to investors. Corporate engagement can be carried out to demand urgent and necessary measures from companies to protect and restore nature and ecosystems
Slide 8: Sustainability-driven success for the leading wealth manager bank
Aktia 3/2023 Results Presentation Sustainability-driven success for the leading wealth manager bank Prosperity Share of SFDR Article 8 and 9 classified funds Target: increase the share L 3/2023 %-points SFDR Article 2090 Principles of Governance Aktia’s ESG ratings Target: reach at least industry av
Slide 9: One of the cornerstones of our strategy - excellent customer experience
Aktia 03/2023 Results Presentation 9/11/23 One of the cornerstones of our strategy - excellent customer experience Aktia’s strategic priorities Investing in improving the customer experience in 2023: Excellent customer experience * Shortening the waiting times for the telephone service Win in wealth
Slide 10: Outi Henriksson, CFO
OutisHenriksson, CFO. , wr oe Aktia
Slide 11: Comparable operating profit growth driven by net interest income
Aktia 03/2023 Results Presentation 9/11/23 " Comparable operating profit growth driven by net interest income Comparable operating profit 2019-Q3/2023 EUR million 126.7 120 + 100 + 03311 87.4 82.0 68.2 55.1 02497 02265 Q135.6 Q123,566 ~ Q © fey fo 3 2019 2020 2021 2022* 2022** 2023 * Reported 2022 f
Slide 12: Financial summary Q3
Aktia 03/2023 Results Presentation 9/11/23 12 Financial summary Q3 EUR ion Q3/2022 Q2/2023 A% 9/2022 A% Total operating income 75.2 724 4h 70.3 7% 215.8 244.8 12% Net interest income 39.5 24.0 64% 33.8 1% 105.1 75.0 40% Net commission income 30.0 299 0% 30.4 -% 906 92.9 2% Net income from life insur
Slide 13: Net interest income improved significantly in Q3
Aktia 3/2023 Results Presentation 9/11/23 13 Net interest income improved significantly in Q3 * Comparable operating income was Comparable operating income, Q-o-Q EUR 75.2 (72.4) million. EUR million * Net interest income improved significantly, 98 supported by the positive development of the custom
Slide 14: Composition of the Group net interest income
Aktia Q3 2023 Results Presentation 9/11/23 4 Composition of the Group net interest income EUR million 110 39,5 90 33,8 70 318 50 24,2 Lending Liquidity portfolio 24,0 30 = Other (mainly deposits in Bank of Finland) 0 4 ul 38 | 49 GB ™ Borrowing (incl. Deposits & covered bonds) 2,2 23 ™ Senior financ
Slide 15: Net commission income mix
Aktia 8 2023 Results Presentation 9/11/23 15 Net commission income mix EUR million 35 29,9 30,3 30,4 a1 30,0 30 / 8 291-19 ys / _ 05 os 05 04 12 " 04 25 20 6 10 5 0 93/2022 4/2022 1/2023 02/2023 93/2023 Other Insurance Lending Card, payment services and borrowing = Mutual funds, asset management and
Slide 16: Comparable operating expenses at the previous year's level
Aktia Q3 2023 Results Presentation 9/11/23 16 Despite high inflation, comparable operating expenses were at the previous year’s level * Personnel costs increased Comparable operating expenses Q3/2023 vs Q3/2022 by 5%, mainly driven by EUR million collective agreement related irexpenses Pen other rai
Slide 17: Comparable operating profit improved in Banking Business and Asset Management
Aktia Comparable operating profit improved in Q3 2023 Results Presentation 9/11/23 7 Banking Business and in Asset Management Comparable operating profit increased significantly in Banking Business and in Asset Management, driven mainly by net interest income Comparable operating profit decreased in
Slide 18: Quality of the credit portfolio
Aktia Q3 2023 Results Presentation 9/11/23 18 Quality of the credit portfoli lid * Loan book constitutes for the Change in expected credit losses (ECL) 1-9/2023 major part of loans to EUR million households and private 3,9 persons with residential or 0 an - 0,6 : real estate securities. on Interest-
Slide 19: Balance sheet total EUR 11,949 million
Aktia Q3 2023 Results Presentation 9/11/23 19 Balance sheet total EUR 11,949 million Total assets ™ Lending to the public and public-sector entities 'm Liquidity portfolio ll Life insurance assets incl. Unit Link ™ Deposits and current account in Bank of Finland Other assets EUR million 14.000 12412
Slide 20: CET1 ratio 3.2 percentage points above the regulatory requirement
Aktia Q3 2023 Results Presentation 9/11/23 20 CET1 ratio 3.2 percentage points above the regulatory requirement * CET1 ratio was 11.0%, being at the same level than cen x in Q2/2023 and improved by +0.2 percentage % ° points from Q4/2022. 6 ; * Risk-weighted assets increased by EUR 127 million “ fro
Slide 21: Funding activities
Aktia 3 2023 Results Presentation Funding activities * In Q3/2023, market sentiment improved from Q2, but investors interest was still focused on the shorter end of the curve and larger-size benchmark issuance. * Persistent high inflation levels have to some extent surprised the market and Central B
Slide 22: Outlook 2023
Aktia 8 2023 Results Presentation Outlook 2023 Aktia's comparable operating profit for 2023 is expected to be clearly higher than the EUR 65.2 million reported for 2022 under the accounting standard previously applied for the life insurance business. The outlook has been prepared based on the follow
Slide 23: Financial targets 2025
Aktia Financial targets 2025 Q3 2023 Results Presentation 9/11/23 Comparable operating profit above EUR 120 million 1-9/2023: EUR 82.0 million 1-12/2022: EUR 124.7 million* Comparable return on Equity (ROE) above 12% 30 September 2023: 14.3% 31 December 2022: 17.2%* Comparable cost-to-income ratio u
Slide 24: Appendices
Aktia Q3 2023 Results Presentation 9/11/23 24 Appendices
Slide 25: AuM: net subscriptions and market changes
Aktia Q3 2023 Results Presentation 9/11/23 25 AuM: net subscriptions and market changes Asset Management, Aktia UI Q-0-Q EUR million 1417 71 16 23, 1279 1240 16 same -99 41 = 1220 12 928 -304 Asset Management, Domestic institutions Q-o-Q EUR million 17 6351 i 87 66 | 6 293 6 266 “59 -103 25 6217 -14
Slide 26: AuM: net subscriptions and market changes
Aktia 3 2023 Results Presentation 9/11/23 26 AuM: net subscriptions and market changes Asset Management, Private Banking Q-0-Q EUR million 105 WW a 2a3 7 9. 4260 127 4199 -60 35 142 4036 ll 3902 il 8 Asset Management, External channels Q-0-Q EUR million 348 te AUM AUM AUM AUM AUM 9/2022 12/2022 3/20
Slide 27: AuM: net subscriptions and market changes
Aktia Q3 2023 Results Presentation 9/11/23 27 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million 721702 4 mes 710 0 || 1688 -21 49 1632 -2 1579 3 AUM 9/2022 AUM 12/2022 AUM 3/2023 AUM 6/2023 AUM 9/2023 Minet subscriptions ll Market changes
Slide 28: Building wealth for our customers and society
BOO Building wealth for our customers and society Investor Relations contacts: ir@aktiafi Aktia