Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q3 2021 Earnings Presentation
27 slides from Aktia Bank Plc Class A's earnings presentation, Nov 4, 2021
Slide 1: Q3 Results
4 NOVEMBER 2021 Q3 Results Mikko Ayub CEO
Slide 2: Continued good performance in all business areas
Continued good performance in all business areas EUR million 3Q2021 3Q2020 % • Good net interest income Total operating income 67.1 49.4 36% • Net commission income also at a very good level Net interest income 23.1 20.0 16% • Strong net income from life insurance was Net commission income 33.5 24.
Slide 3: Comparable operating profit 2017–3Q2021
Comparable operating profit 2017–3Q2021 EUR million 80 70 68.2 66.7 65.4 59.9 60 55.1 Q3 23.8 50 Q4 19.8 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 Q3 2021 Results Presentation 4 November 2021 3
Slide 4: Asset Management
Asset Management • Integration work continued in Q3 and proceeded according to plans and timetable • The organisational structure of Aktia’s asset management was completed during Q3 • Customer service models merged, and piloting projects initiated during Q3 • Financing of investments well received b
Slide 5: Assets under Management
Assets under Management AuM excluding custody EUR million • Net subscriptions positive during Q3 16,000 15,582 15,581 14,000 • Volatility of the equity 12,000 market and the 9,853 10,447 10,379 10,000 nervousness of investors 8,353 weighed the changes in 7,628 8,000 5,597 6,235 market values 6,000 4
Slide 6: Banking Business
Banking Business • Growth in loan book continues • Loan margins from corporate customers continued to increase during Q3 • Goal not to increase volume or gain market share as such, we hold strong focus on profitability and good quality of the credit portfolio • Aktia and Finnair have agreed on co-op
Slide 7: Life Insurance
Life Insurance • The demand for risk life insurances continued to increase, particularly the sales of critical illness insurances developed well • Co-operation with Finlands Företagarskydd continued well, strengthening Aktia Life’s position particularly amongst SME companies • Focus within business
Slide 8: Our three strategic priorities
Our three strategic priorities 2025 1 OUR VISION Win in wealth management The leading wealth A) The most preferred wealth manager among private and institutional customers manager bank B) Success in integrating Taaleri’s wealth management operations OUR MISSION 2 Building wealth for our Growth among
Slide 9: Focus on guiding customers to our focal point
Focus on guiding customers to our focal point Growth in our strategic sweet-spot Focus on excellent customer experience Offering comprehensive wealth ASSET MANAGEMENT and offering for single product customers management to our target segments, including wealth plans, financing, asset management serv
Slide 10: The financial targets 2025
The financial targets 2025 Comparable Comparable Comparable Common Equity operating profit return on cost-to-income Tier 1 capital ratio above EUR 120 Equity (ROE) ratio under 0.60 (CET1) above 1.5 million above 12% percentage points over the regulatory requirement 1–9/2021; 30 September 2021; 1–9/2
Slide 11: 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 12: Financial overview
Aktia Q3 2021 Results presentation Financial overview Outi Henriksson CFO Aktia Q3 2021 Results Presentation 4 November 2021 12
Slide 13: 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 70 3.4 66.5 30 10.5 0.1 57.0 57.9 9.7 26.0 60 0.6 1.6 25 23.8 49.4 Other 10.2 9.9 6.8 1.8 50 0.5 4.7 19.8 Net income from 20 Centralised 31.7 40 33.5 life insurance 16
Slide 14: Comparable operating profit
Comparable operating profit 1–9/2021 vs 1–9/2020 +43% underlying profit growth (without unrealised value changes) EUR million Comparable Net interest Actuarially Other net income Operating Other operating profit income calculated result from investments expenses 1–9/2020 (Net income from (Net income
Slide 15: AuM – Net subscriptions and market changes
AuM – Net subscriptions and market changes Asset Management, Aktia UI Q-o-Q Asset Management, domestic institutions Q-o-Q EUR million EUR million AUM Market Net AUM Market Net AUM AUM Market Net AUM Net AUM Market 9/2020 changes subscriptions 3/2021 changes subscriptions 9/2021 9/2020 changes subscr
Slide 16: AuM – Net subscriptions and market changes
AuM – Net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million Net AUM Market Organisational Market Net AUM subscriptions 12/2020 changes adjustments changes subscriptions 9/2021 AUM Market Net AUM Net AUM Market 9/2020 changes subscriptions 3/2021 subscriptions 6/2021 changes
Slide 17: Comparable operating expenses
Comparable operating expenses 1–9/2021 vs 1–9/2020 Staff costs: EUR million The comparable staff costs increased by 18% to EUR 60.2 (51.2) million. The increase is mainly attributable to increase in personnel as a result of acquisition of Taaleri’s wealth management operations (in 2Q). IT expenses:
Slide 18: Impairments for future expected credit losses
Impairments for future expected credit losses Change in expected credit losses (ECL) 1–9/2021 Impairment of credits and other EUR million commitments 1–9/2021 EUR –4.6 million • Impairments on credits and other commitments increased to EUR -4.6 (-3.2) million, of which the change in the allowance fo
Slide 19: Financial summary Q3 and YTD
Financial summary Q3 and YTD EUR million 3Q2021 3Q2020 % 1-9/2021 1-9/2020 , % Total operating income 67.1 49.4 36% 198.3 144.1 38% Net interest income 23.1 20.0 16% 72.2 59.9 21% Net commission income 33.5 24.2 39% 90.3 72.2 25% Net income from life insurance 9.7 4.7 105% 30.1 9.6 212% Other inco
Slide 20: Structure of lending and deposits
Structure of lending and deposits 30 September 2021 (31 December 2020) Lending Deposits Total EUR 7,413 (7,000) million Total EUR 4,607 (4,466) million 1% (0%) 8% (7%) EUR 55 EUR 367 1% (2%) 13% (13%) (30) million (314) million EUR 65 EUR 972 (66) million (908) million 20% (21%) EUR 911 15% (14%) (9
Slide 21: Balance sheet total increased to EUR 11,374 million
Balance sheet total increased to EUR 11,374 million 30 September 2021 Total assets Total liabilities and equity EUR million EUR million 11,374 11,374 10,573 10,573 Deposits from the 10,000 10,000 public 4,607 Lending to the public Liabilities to central 8,000 4,466 and public-sector 8,000 banks and
Slide 22: CET1 Capital ratio
CET1 ratio 2.7 percentage points above the requirement Capital Adequacy • At the end of the period, the Bank Group’s Common Equity CET1 Tier 1 (CET1) capital ratio was 10.4% % % • Target: CET1 ratio above 1.5 percentage points over the regulatory 20 requirements, i.e. above 9.2 % 18 9 15.6 15.9 15.7
Slide 23: Funding activities
Funding activities • During the Q3/2021 Aktia completed two private placement transaction. From the beginning of the year 2021 has Aktia Bank issued 14 pieces of senior preferred debt under the EMTN program. The total volume has been approximately EUR 215 million with maturities in the range of 3–10
Slide 24: Appendices
Aktia Q3 2021 Results presentation Appendices Aktia Q3 2021 Results Presentation 4 November 2021 24
Slide 25: Net interest income mix
Net interest income mix EUR million 30 27.7 23.4 22.9 3.9 25 21.5 21.8 23.5 23.1 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 0.4 1.2 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
Slide 26: Net commission income mix
Net commission income mix EUR million ◼ Other 35 33.5 ◼ Insurance 31.7 1.0 ◼ Lending 0.6 1.4 2.4 ◼ Card, payment services and borrowing 30 0.5 2.7 ◼ Mutual funds, asset management 25.4 25.0 25.0 5.4 and securities brokerage 25 24.2 1.5 0.3 1.3 5.5 1.3 0.3 0.4 2.4 2.2 2.3 20 5.4 5.4 5.5 15 24.2 21.6
Slide 27: Building wealth for our customers and society
Building wealth for our customers and society Investor Relations contacts: Lotta Borgström Director, Investor Relations and Communications +358 10 247 6838 lotta.borgstrom@aktia.fi