Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q4 2022 Earnings Presentation
27 slides from Aktia Bank Plc Class A's earnings presentation, Feb 17, 2023
Slide 1: Q4 Results
17 FEBRUARY 2023 Q4 Results Mikko Ayub, CEO Outi Henriksson, CFO
Slide 2: Highlights Q4
Q4 2022 Results Presentation 17/2/2023 2 Highlights Q4 Interest income from lending grew strongly towards the end of the year. Higher financing and hedging costs weighed down net interest income. Strong new sales in asset management, especially in Private Banking. Overall net subscriptions lande
Slide 3: Operating environment weighed down operating profit
Q4 2022 Results Presentation 17/2/2023 3 Operating environment weighed down operating profit Comparable operating profit 2018 2022 EUR million 100 87.4 90 80 Q4 20.7 70 65.4 68.2 65.2 60 55.1 Q4 14.8 Q3 23.8 50 Q3 12.3 40 30 Q2 26.0 Q2 24.7 20 10 Q1 16.9 Q1 13.3 0 2018 2019 2020 2021 2022
Slide 4: Business areas
Q4 2022 Results Presentation 17/2/2023 4 Business areas
Slide 5: Increase in interest rates continued
Q4 2022 Results Presentation 17/2/2023 5 Increase in interest rates continued
Slide 6: Average margin continued to rise
Q4 2022 Results Presentation Banking Asset Management Life Insurance 17/2/2023 6 Average margin continued to rise • Mortgage demand continued to decrease Development of credit portfolio Q-o-Q EUR million EUR million confidence in the economy. 700 7,792 7,900 • Corporate lending remained strong. 7,69
Slide 7: Stable AuM in the quarter
Q4 2022 Results Presentation Banking Asset Management Life Insurance 17/2/2023 7 Stable AuM in the quarter • Best new sales quarter of the year. Assets under Management, excluding custody • AuM was on the same level as the previous EUR million quarter due to stabilised markets. 17,000 15,794 15,000
Slide 8: Solid performance in Life Insurance continued
Q4 2022 Results Presentation Banking Asset Management Life Insurance 17/2/2023 8 Solid performance in Life Insurance continued • Stable growth in new sales of risk life Development of the actuarially calculated result Q-o-Q insurances. EUR million • Interest rate rise reduced the market value 12.0 o
Slide 9: Sustainable year 2022
Q4 2022 Results Presentation 17/2/2023 9 Sustainable year 2022 Our mission is to build wealth for our customers and society, not only today but also for generations to come. During the year 2022 Aktia has worked with implementing the EU sustainable finance regulation, new initiatives, Net Zero targe
Slide 10: UI-Aktia Sustainable Corporate Bond
Q4 2022 Results Presentation 17/2/2023 10 UI-Aktia Sustainable Corporate Bond Aktia launched the new UI-Aktia Sustainable Corporate Bond fund on 1 September 2022. Fund reached a size of over EUR 100 million in December. In accordance with Article 9 of the EU Sustainable Finance Disclosure Regulation
Slide 11: Financial targets 2025
Q4 2022 Results Presentation 17/2/2023 11 Financial targets 2025 Comparable Comparable return Comparable Common Equity operating profit on Equity (ROE) cost-to-income ratio Tier 1 capital ratio above EUR above 12% under 0.60 (CET1) above 1.5 120 million percentage points over the regulatory requirem
Slide 12: Financial overview
Financial overview Outi Henriksson, CFO
Slide 13: Financial summary Q4
Q4 2022 Results Presentation 17/2/2023 13 Financial summary Q4 EUR million 4Q2022 4Q2021 % 2022 2021 % Total operating income 67.5 65.5 3% 254.3 263.8 -4% Net interest income 24.2 24.1 0% 99.2 96.2 3% Net commission income 29.1 33.7 -14% 122.0 124.0 -2% Net income from life insurance 12.7 7.6 68%
Slide 14: Outlook 2023
Q4 2022 Results Presentation 17/2/2023 14 Outlook 2023 Aktia's comparable operating profit in 2023 is expected to be clearly higher than in 2022. The outlook is based on following assumptions: • Net interest income is expected to be clearly higher than in 2022. • Net commission income is expected to
Slide 15: Rising interest rates increased interest income from lending
Q4 2022 Results Presentation 17/2/2023 15 Rising interest rates increased interest income from lending Comparable operating income, Q-o-Q • Interest income from lending continued to EUR million grow strongly. 71.6 67.5 65.5 1.4 68 1.5 • Growth in lending was somewhat offset by 7.6 0.2 58.8 12.7 56.2
Slide 16: Composition of the Group net interest income
Q4 2022 Results Presentation 17/2/2023 16 Composition of the Group net interest income EUR million 24.2 40 2.5 30 25.8 24.0 24.1 25.1 1.9 Senior Debt & Other 2.0 1.9 1.7 0.4 1.3 0.8 1.1 0.4 1.0 1.8 TLTRO loan 2.0 2.7 20 39.1 Hedging with interest rate derivatives Liquidity portfolio 26.7 10 20.3 20.
Slide 17: Net commission income mix
Q4 2022 Results Presentation 17/2/2023 17 Net commission income mix EUR million 35 33.7 1.4 31.3 31.6 0.6 1.0 29.9 30 2.5 1.1 0.5 29.1 0.5 0.8 2.2 2.5 0.5 1.0 2.2 5.5 2.1 0.5 Other 25 5.8 6.1 5.9 Insurance 6.0 20 Lending Card, payment services and borrowing 15 Mutual funds, asset management and 23.8
Slide 18: Comparable operating profit decreased
Q4 2022 Results Presentation 17/2/2023 18 Comparable operating profit decreased Comparable operating profit 1 12/2022 vs 1 12/2021 EUR million 9.0 -23.3 7.2 2.9 -2.0 Realised 87.4 capital gains (Net income Net interest Net Actuarially from income commission calculated life -0.9 -6.9 income result in
Slide 19: Quality of the credit portfolio remains solid
Q4 2022 Results Presentation 17/2/2023 19 Quality of the credit portfolio remains solid Calibration of the ECL Change in expected credit losses (ECL) 1 12/2022 EUR million model, driven by regulation, increased the provisions for 0.6 -0.3 -3.8 potential future credit losses 6.5 0.5 Interest- Inter
Slide 20: Balance sheet total increased to EUR 12 393 million
Q4 2022 Results Presentation 17/2/2023 20 Balance sheet total increased to EUR 12 393 million Total assets Total liabilities and equity EUR million EUR million 11 653 12 393 11 653 12 393 10,000 10,000 5,214 4,503 Deposits from the public 7,792 8,000 7,486 Lending to the public 8,000 Liabilities to
Slide 21: CET1 ratio 3.1 percentage points above the requirement
Q4 2022 Results Presentation 17/2/2023 21 CET1 ratio 3.1 percentage points above the requirement • The CET1 ratio was 10.8% and increased from Q3 by 0.2 percentage CET1 points. % % • The risk-weighted assets increased by EUR 47 million in 4Q. Increase 20 from the beginning of the year was EUR 190 mi
Slide 22: Funding activities
Q4 2022 Results Presentation 17/2/2023 22 Funding activities • During the Q4 Debt Capital Market mood improved significantly. Spread levels remained still wide but investors returned to the market and improved the demand of both covered and senior notes. • During Q4 2022, Aktia completed seven senio
Slide 23: Appendices
Q4 2022 Results Presentation 17/2/2023 23 Appendices
Slide 24: AuM: net subscriptions and market changes
Q4 2022 Results Presentation 17/2/2023 24 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 AUM AUM AUM AUM AUM AUM AUM AUM AUM 12/2021 3/2022 6/2022 9/2022 12/2022 12/2021 3/2022 6/2022 9/2022 12/2022
Slide 25: AuM: net subscriptions and market changes
Q4 2022 Results Presentation 17/2/2023 25 AuM: net subscriptions and market changes Asset Management, Private Banking Q-o-Q Asset Management, External channels Q-o-Q EUR million EUR million AUM AUM AUM AUM AUM AUM AUM AUM AUM AUM 12/2021 3/2022 6/2022 9/2022 12/2022 12/2021 3/2022 6/2022 9/2022 12/2
Slide 26: AuM: net subscriptions and market changes
Q4 2022 Results Presentation 17/2/2023 26 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million AUM 12/2021 AUM 3/2022 AUM 6/2022 AUM 9/2022 AUM 12/2022 Net subscriptions Market changes
Slide 27: Building wealth for our customers and society
Q4 2022 Results Presentation 27 17/2/2023 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