Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q1 2022 Earnings Presentation
29 slides from Aktia Bank Plc Class A's earnings presentation, May 11, 2022
Slide 1: Financial overview
QT = Result Mikko Ayub, CEO Outi Henriksson, CFO
Slide 2: Highlights in Q1 2022
Aktia 12022 Results Presentation 11/5/22 Highlights in Q1 2022 * Solid underlying business performance continued poate * Strong growth in net interest income * Net commission income was down mainly due to the market turbulence * The negative unrealised value changes in the life insurance company's i
Slide 3: Market uncertainty decreased the comparable operating profit
Aktia Q1 2022 Results Presentation 11/5/22 3 nn EEO Market uncertainty decreased the comparable operating profit Comparable operating profit 2018-2022 EUR million 100 - 90 80 F 70 + 65.4 68.2 60 7 55.1 2018 2019 2020
Slide 4: Interest rates experience a prominent shift
Aktia Q1 2022 Results Presentation 11/5/22 4 Interest rates experience a prominent shift Interest rate development % 2.00 175 150 125 100 075 050 025 000 s sama) f -0.25 \ ae 2019 2020 2021 2022 1.76% EUR Swap, 10-year 0.23% Euribor, 12 month 0.00% ECB, main rate Source: Aktia, ECB, Macrobond.
Slide 5: Business areas
Aktia 21.2022 Results Presentation —— . o RSS Business) — areas “a
Slide 6: Growth driven by corporate lending continues
Aktia 1 2022 Results Presentation 11/5/22 6 Growth driven by corporate lending continues Excellent development in the corporate customer business Growth achieved without change in our risk profile Private customers more cautious due to the increased interest rates and general uncertainty Reduced dem
Slide 7: High market volatility decreased AUM
Aktia Q12022Results Presentation High market volatility decreased AUM AuM decreased by approx. EUR 1 billion High turbulence in the market affected market values Net subscriptions amounted to approx. EUR -210 million Reallocation of investments by a few foreign institutional investors led to redempt
Slide 8: Increase in interest rates weighed down investment portfolio
Aktia Q1 2022Results Presentation Increase in interest rates weighed down nvestment portfolio Positive development in Life Insurance: The actuarially calculated result for Q1 increased to EUR 4.3 (3.5) million Premiums written increased by 18% since last year and sales of investment-linked savings i
Slide 9: Q1 2022 Results Presentation
Q1 2022 Results Presentation
Slide 10: Our three strategic priorities
Aktia 11/5/22 10 Our three strategic priorities y en OUR VISION 7 The leading wealth “INS manager bank Win in wealth management A) The most preferred wealth manager among private and institutional customers B) Success in integrating Taaleri’s wealth management operations OUR MISSION Building wealth
Slide 11: Focus on guiding customers to our focal point
Aktia Q1 2022 Results Presentation 11/5/22 " Focus on guiding customers to our focal point e Growth in our strategic sweet-spot Offering comprehensive wealth management to our target segments, including wealth plans, financing, asset management services, personal life insurance and convenient bankin
Slide 12: The financial targets 2025
Aktia Q1 2022Results Presentation The financial targets 2025 11/5/22 Comparable operating profit above EUR 120 million 1-3/2022; EUR 13.3 million Comparable return on Equity (ROE) above 12% 31 March 2022; 6.5% Comparable cost-to-income ratio under 0.60 1-3/2022; 0.78 Common Equity Tier 1 capital rat
Slide 13: Financial overview
Slide 14: Financial summary Q1
Aktia Q1 2022 Results Presentation 11/5/22 4 Financial summary Q1 EUR ion 192021 4Q2021 A% Total operating income 59.0 579 2% 65.5 -10% Net interest income 251 213 18% 244 4% Net commission income 313 25.0 25% 33.7 T% Net income from life insurance 18 99 ~82% 76 16% Other income 08 16 51% 0.2 340% T
Slide 15: Solid business performance continued
Aktia Q12022Results Presentation 11/5/22 15 Solid business performance continued Net interest income up 18% Y-o-Y The strong growth was driven by excellent development in the corporate customer business 25% growth in net commission income Y-o-Y mainly due to acquisition of Taaleri wealth management
Slide 16: Comparable operating profit affected by market conditions
Aktia Q12022Results Presentation 11/5/22 16 Comparable operating profit affected by market conditions * Very solid development in Banking Business, profitability affected by the EUR 46 million reservation for the stability fee * Negative value changes in the life insurance company's investment portf
Slide 17: Underlying profit increased by 8%
Aktia Q1 2022 Results Presentation 11/5/22 7 Underlying profit increased by 8% Comparable operating profit 1-3/2022 vs 1-3/2021 EUR million Actuarially calculated result (Net income from Net life insurance) ‘commission 16.9 income -8.8 Net interest Net income 18 .! income from 13.3 investments Stabi
Slide 18: Income growth driven by NII, expenses higher
Aktia Income growth driven by NII, expenses higher Q1 2022 Results Presentation 11/5/22 18 due to the Taaleri acquisition in 2Q/2021 Comparable income 1-3/2022 vs 1-3/2021 EUR million 57.9 Net interest income Net commission income -8.1 Net income from life insurance 58.8 -1.0 Other operating income
Slide 19: Expected credit losses at a very moderate level
Aktia 12022 Results Presentation 11/5/22 19 Expected credit losses at a very moderate level We have not observed any major new risk concentrations in our credit portfolio The macroeconomic assumptions in the ECL model were updated again in Q1, slightly positive but no material impact in 1Q Change in
Slide 20: Balance sheet total increased to EUR 11,731 million
Aktia Q1 2022 Results Presentation Balance sheet total increased to EUR 11,731 million Total assets EUR million 11,653 11,731 10,000 8,000 1m Lending to the public and public-sector entities 6,000 Liquidity portfolio 4,000 - Life insurance assets 1306 incl. Unit Link 2,000 1714 Other assets 447 1187
Slide 21: CET1 ratio 2.9 percentage points above the requirement
Aktia requirement * The CET1 ratio was 10.6% and decreased from year end by 06 percentage points ¢ Aktia Life Insurance Ltd paid a dividend of EUR 20 million to the parent company in March, which strengthened the Bank’s CET1 capital * The fair value reserve was negatively affected by the increase in
Slide 22: Funding activities
—_ 2 Aktia Q1 2022 Results Presentation 19/5/22 Funding activities * During Q12022, Aktia completed 8 senior preferred private placement transactions. The total volume has been approximately EUR 276 million with maturities in the range of 2-12 years. The bank will continue to issue senior debt durin
Slide 23: Outlook 2022 (unchanged)
Aktia Q1 2022 Results Presentation 11/5/22 23 Outlook 2022 (unchanged) The comparable operating profit in 2022 is expected to be somewhat higher than in 2021 provided that the market development is favourable and the circumstances in society remain stable. Aktia Group's result for 2022 depends on th
Slide 24: Appendix
Aktia Q1 2022 Results Presentation
Slide 25: Net interest income mix
Aktia 12022 Results Presentation 11/5/22 25 Net interest income mix EUR million 35 207 30 254 23.1 241 25 213 Kei Other . i % ie 20 Z mTLTRO loan 5 ™ Hedging with interest rate derivatives Liquidity portfolio 10 = Borrowing and lending 5 0) : =A 16 rs 7 5 1/2021 2/2021 93/2021 Q4/2021 Q1/2022
Slide 26: Net commission income mix
Aktia 12022 Results Presentation 11/5/22 26 Net commission income mix EUR million 35 317 33.7 . 31.3 30 d 25 27 25.0 55 Other 25 55 Insurance 20 Lending ™ Card, payment services and borrowing 15 Mutual funds, asset management and securities brokerage 10 5 () 1/2021 2/2021 93/2021 Q4/2021 Q1/2022
Slide 27: AuM: net subscriptions and market changes
Aktia 1 2022 Results Presentation 11/5/22 27 ° ° AuM: net subscriptions and market changes e Asset Management, Aktia UI Q-0-Q Asset Management, Domestic institutions Q-o-Q EUR million 37 EUR million 123 2,041 goo ee 2,040 222 11,055 - 324 10,864 34. 10,844 —— | 38 5301 =F = “77 WB 10,390 6 -124 “587
Slide 28: AuM: net subscriptions and market changes
Aktia Q1 2022 Results Presentation 11/5/22 28 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million 3,102 87 2,816 _18 131 2,677 ody —— 2.697 uel = a x610 61 — -224 -588 AUM 3/2021 AUM 6/2021 AUM 9/2021 AUM 12/2021 AUM 3/2022 Minet subscriptions Ml Marketchanges _Ill O
Slide 29: Building wealth for our customers and society
BOO Building wealth for our customers and society Investor Relations contacts: Lotta Borgstrém Director, Investor Relations and Communications +358 10 247 6838 lotta.borgstrom@aktia fi Aktia