Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q1 2023 Earnings Presentation
29 slides from Aktia Bank Plc Class A's earnings presentation, May 11, 2023
Slide 1: Q1 Results
11 MAY 2023 Q1 Results Juha Hammarén, interim CEO Outi Henriksson, CFO
Slide 2: Highlights Q1
Q1 2023 Results Presentation 12/6/23 2 Highlights Q1 • Net interest income grew by 27% to EUR 31.8 (25.1) million. • Net commission income remained approximately at the previous year’s level at EUR 30.3 (31.3) million. • Assets under management (AuM) increased from the end of the year to EUR 13.8 (1
Slide 3: Business areas
Q1 2023 Results Presentation 12/6/23 3 Business areas
Slide 4: Average margin continued to grow
Q1 2023 Results Presentation Banking Asset Management Life Insurance 12/6/23 4 Average margin continued to grow Development of credit portfolio Q-o-Q • Net interest income of the loan book developed very favourably. EUR million EUR million 7,805 • Consumer demand for housing loans 700 7,698 7,739 7,
Slide 5: Slight increase in AuM
Q1 2023 Results Presentation Banking Asset Management Life Insurance 12/6/23 5 Slight increase in AuM Assets under Management, excluding custody • Market environment clearly improved. EUR million • Rising interest rates put pressure on the market 17,000 15 794 value of fixed income and housing funds
Slide 6: Life Insurance business remained stable
Q1 2023 Results Presentation Banking Asset Management Life Insurance 12/6/23 6 Life Insurance business remained stable • Sales of risk life insurances developed well. Development of the actuarially calculated result Q-o-Q • Sales of investment-linked insurances EUR million continued to develop posit
Slide 7: Sustainability at Aktia – Q1/2023
Q1 2023 Results Presentation 12/6/23 7 Sustainability at Aktia – Q1/2023 Aktia follows the sustainability programme updated last year, of which the high-level targets are to enable sustainable prosperity, provide meaningful work for skilled employees, ensure reliable and transparent operations and w
Slide 8: Success of the leading wealth management bank is based on sustainability
Q1 2023 Results Presentation 12/6/23 8 Success of the leading wealth management bank is based on sustainability = target achieved Share of SFDR Article 8 and 9 classified funds Aktia’s ESG ratings Relative carbon footprint of equity and Target: increase the share Target: reach at least industry aver
Slide 9: Financial overview
Financial overview Outi Henriksson, CFO
Slide 10: Changes in segment reporting and the implementation of IFRS 17
Q1 2023 Results Presentation 12/6/23 10 Changes in segment reporting and the implementation of IFRS 17 Segment reporting • In order to increase transparency, Aktia’s Life Insurance business has been separated from the Asset Management segment • As of 1 January 2023, Aktia’s reporting segments are Ba
Slide 11: Implementation of IFRS 17 had a major impact on restated comparative figures
Q1 2023 Results Presentation 12/6/23 11 Implementation of IFRS 17 had a major impact on restated comparative figures Comparable operating profit 2019–Q1 2023 EUR million 130 124,7 Q4 8.3 110 Q3 31.1 87.4 90 68.2 70 65,2 55.1 Q2 49,7 Q4 14,8 50 Q3 12,3 30 23,6 Q2 24,7 Q1 35,6 10 Q1 23.6 Q1 13,3 -10 2
Slide 12: Financial summary Q1
Q1 2023 Results Presentation 12/6/23 12 Financial summary Q1 EUR million 1Q/2023 1Q/2022 ∆% 4Q/2022 ∆% Total operating income 70.3 78.7 -11% 58.2 21% Net interest income 31.8 25.1 27% 24.2 31% Net commission income 30.3 31.3 -3% 29.1 4% Net income from life insurance 7.2 21.4 -67% 3.3 116% Other inc
Slide 13: Outlook 2023
Q1 2023 Results Presentation 12/6/23 13 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 th
Slide 14: Adoption of IFRS 17 decreased comparable operating profit
Q1 2023 Results Presentation 12/6/23 14 Adoption of IFRS 17 decreased comparable operating profit Comparable operating profit 1–3/2023 vs 1–3/2022 EUR million Actuarially calculated Net interest Net result income commission income Unrealised Other net Other value income from Stability fee Operating
Slide 15: Strong growth in NII
Q1 2023 Results Presentation 12/6/23 15 Strong growth in NII • Comparable operating income was Comparable operating income, Q-o-Q EUR 70.3 (78.5) million. EUR million • Net interest income developed very 98 93.7 positively with rising interest rates. 78.5 1.4 72.4 70.3 • Net commission income decrea
Slide 16: Sharp raise in interest rates driving NII
Q1 2023 Results Presentation 12/6/23 16 Sharp raise in interest rates driving NII Interest income from lending Covered Bonds Senior debt Central Bank financing/ TLTRO
Slide 17: Composition of the Group net interest income
Q1 2023 Results Presentation 12/6/23 17 Composition of the Group net interest income EUR million 31.8 65 5.8 55 3.3 45 24.2 2.3 Other 35 1.1 TLTRO loan 25.1 2.0 25.8 24.0 1.9 54.7 Liquidity portfolio 25 1.0 0.6 2.8 39.5 Borrowing 2.5 15 26.7 Lending 20.6 22.0 5 -1.8 -5 -1.3 -0.2 -1.3 -0.7 -16.1 -15
Slide 18: Net commission income mix
Q1 2023 Results Presentation 12/6/23 18 Net commission income mix EUR million 35 31.3 1.1 31.6 1.0 29.9 0.8 30.3 30 0.5 0.5 29.1 1.0 2.5 0.5 1.3 2.2 0.5 Other 2.2 2.1 0.5 2.1 25 5.8 6.1 5.9 6.3 Insurance 6.0 20 Lending 15 Card, payment services and borrowing 21.7 21.6 20.5 10 19.5 20.0 Mutual funds,
Slide 19: Comparable operating profit increased clearly in Banking Business and in Asset Management
Q1 2023 Results Presentation 12/6/23 19 Comparable operating profit increased clearly in Banking Business and in Asset Management • Comparable operating profit Comparable operating profit Q-o-Q EUR million increased clearly in Banking Business and in Asset 55 49.7 Management 1.9 45 • Comparable oper
Slide 20: Quality of the credit portfolio remains solid
Q1 2023 Results Presentation 12/6/23 20 Quality of the credit portfolio remains solid • Loan book constitutes for the Change in expected credit losses (ECL) 1–3/2023 major part of loans to EUR million households and private persons with residential or real estate securities. • The loan-to-value (LTV
Slide 21: Balance sheet total EUR 12,122 million
Q1 2023 Results Presentation 12/6/23 21 Balance sheet total EUR 12,122 million Total assets Total liabilities and equity EUR million EUR million 12,412 12,122 12,412 12,122 12,000 12,000 Deposits from the public 10,000 10,000 5,214 Lending to the public and 4,871 Liabilities to central banks 7,792 7
Slide 22: CET1 ratio 3.3 percentage points above the requirement
Q1 2023 Results Presentation 12/6/23 22 CET1 ratio 3.3 percentage points above the requirement • CET1 ratio 11.1% , +0.2 percentage points from CET1 % % Q4/2022. 20 • Risk-weighted assets increased only by EUR 2 18 9 million, mainly due to changes made by Statistics 16 Finland to its Industry Classi
Slide 23: Funding activities
Q1 2023 Results Presentation 12/6/23 23 Funding activities • Market sentiment turned more negative towards the end of Q1 due the liquidity problems amongst the medium-size US banks. • Concerns of potential asset and liability problems in banking community after very quickly increased interest rates
Slide 24: Financial targets 2025
Q1 2023 Results Presentation 12/6/23 24 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 requiremen
Slide 25: Appendices
Q1 2023 Results Presentation 12/6/23 25 Appendices
Slide 26: AuM: net subscriptions and market changes
Q1 2023 Results Presentation 12/6/23 26 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 3/2022 6/2022 9/2022 12/2022 3/2023 3/2022 6/2022 9/2022 12/2022 3/2023 Net
Slide 27: AuM: net subscriptions and market changes
Q1 2023 Results Presentation 12/6/23 27 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 3/2022 6/2022 9/2022 12/2022 3/2023 3/2022 6/2022 9/2022 12/2022 3/2023
Slide 28: AuM: net subscriptions and market changes
Q1 2023 Results Presentation 12/6/23 28 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million AUM 3/2022 AUM 6/2022 AUM 9/2022 AUM 12/2022 AUM 3/2023 Net subscriptions Market changes
Slide 29: Building wealth for our customers and society
Q1 2023 Results Presentation 29 12/6/23 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