Aktia Bank PLC Class A · OMXHEX:AKTIA
Aktia Bank PLC Class A — Debt Investor Presentation (August 2024)
40 slides from Aktia Bank PLC Class A's debt investor presentation, August 2024
Slide 1: Debt Investor Presentation
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Slide 2: Q2 in short
. 2.2024 Debt Investor Aktia Presentation 30/06/24 2 Q2 in short ¢ Financial result improved in all business areas. * Comparable operating profit was 21% higher than last year. * Comparable ROE increased to 14.9% (13.4%) and comparable C/I ratio improved to 0.57 (0.61) driven by improved profit. * A
Slide 3: Strong performance compared to last years
ebt Investor Presentation Q2 2024 Debt | Pr i 30/06/24 3 Strong performance compared to last years Comparable operating profit 2020-2024 EUR million 1247 120.0 104.8 100.0 87.4 0425. 80.0 65.2 647 60.0 55.1 ese 40.0 02256 20.0 1226 0.0 r r r r 1 2020 2021 2022 2028 2024 Restated according to the acc
Slide 4: Composition of the Group net interest income
Aktia Q2 2024 Debt Investor Presentation 30/06/24 Composition of the Group net interest income EUR million no 90 70 50 30 10 -10 -30 -50 -70 38.6 32.8 49 65 aa [ aA 38.2 39.1 Q2/2023 Q3/2023 Q4/2023 25 38.8 87 9.0 | Q1/2024 Q2/2024 ™ Lending Liquidity portfolio = Other (mainly deposits in Bank of Fi
Slide 5: Dab ear PLAGE HAN ;
Aktia Dab ear PLAGE HAN ; a I é © \ | 30/06/24
Slide 6: NII continued to develop positively
Aktia Q2.2024 Debt Investor Presentation Banking Asset Management Life Insurance 30/06/24 6 NII continued to develop positively * Net interest income was 18% hig her than last Development of the Group’s credit portfolio Q-o-Q year, driven by high interest income from EUR million EUR million : : , .
Slide 7: Assets under Management increased in Q2
Aktia Q2 2024 Debt Investor Presentation Banking Asset Management Life Insurance 30/06/24 7 Assets under Management increased in Q2 * Assets under Management increased in The Group’s Assets under Management, excluding custody Q2 supported by favourable market EUR million development. . eae : 16,000
Slide 8: Life insurance business delivered a solid result
Aktia 2 2024 Debt Investor Presentation Banking Asset Management Life Insurance 30/06/24 Life insurance business delivered a solid result * — Sales of risk life insurance policies remained as strong level as in the previous quarters. * — Sales of investment-linked insurances were good. Positive net
Slide 9: .2024 Debt
Aktia Q2.2024 Debt Investor Presentation
Slide 10: Aktia committed to SBTi requirements in Q2
Aktia Q2 2024 Debt Investor Presentation 30/06/24 10 Aktia committed to SBTi requirements in Q2 Our mission is to build wealth for our customers and society, not only today but also for generations to come. Aktia and the financial sector as a whole play a major role in the green transition. Aktia wa
Slide 11: Sustainability-driven success for the leading wealth manager bank
Aktia Q2 2024 Debt Investor Presentation Sustainability-driven success for the leading wealth manager bank Prosperity & Planet People 30/06/24 n = 2025 target achieved Principles of Governance Share of SFDR Article 8 and 9 classified funds Target: increase the share Q2/2024 98.0% (outer circle) Q2/2
Slide 12: Financial overview
Financial overview Aktia
Slide 13: Financial summary
Aktia Q2 2024 Debt Investor Presentation Financial summary EUR million Q2/2023 A% Q1/2024 A% 6/2023 A% Total operating income 76.7 69.3 1% 773 -1% 154.0 138.7 1% Net interest income 38.8 32.8 18% 391 -% 719 63.7 22% Net commission income 30.8 30.4 2% 301 2% 610 606 % Net income from life insurance 7
Slide 14: Balance sheet increased to EUR 12,367 million
Aktia Q2 2024 Debt Investor Presentation 30/06/24 4 Balance sheet increased to EUR 12,367 million Total assets EUR million 14,000 12,038 12,000 10,000 8,000 6,000 4,000 2,000 583 31 Dec 2023 30 Jun 2024 ™ Lending to the public and public-sector entities = Liquidity portfolio Life insurance assets in
Slide 15: Households account for the majority of lending and deposits
Aktia 2 2024 Debt Investor Presentation Households account for the majority of lending and deposits Lending Deposits 69; 1% 319; 7% 73; 2% 1,201, 15% ™ Households Total Total ™ Corporates 7,807 a owing asain 4,478 (7,866) (4,564) EUR million EUR million ™ Public entities and non- profit organisation
Slide 16: Net commission income grew slightly
Aktia 2.2024 Debt Investor Presentation 30/06/24 16 Net commission income grew slightly EUR million 35 7 30.4 30.0 29.8 30.1 30.8 30 7 17 20 19 25 + 62 an 59 67 20 + 36 32 35 36 16 + 10 + 5 b 0) 2/2028 Q3/2023 Q4/2023 1/2024 2/2024 Other Lending Card, payment services and borrowing ™ Asset managemen
Slide 17: Good cost control despite higher IT spend and inflation
Aktia Q2 2024 Debt Investor Presentation 30/06/24 7 Good cost control despite higher IT spend and inflation * Comparable operating Comparable operating expenses Q2/2024 vs Q2/2023 expenses increased by 5% due EUR million to increased IT expenses and inflation. other : operating * IT expenses increas
Slide 18: Quality of the credit portfolio
Aktia For the major part, our loan book consists of loans to households supported by residential or real estate securities. The loan-to-value (LTV) ratio remained at a healthy level at 43%. Credit loss provisions in Q2 (EUR 1.8 million) increased 2 2024 Debt Investor Presentation 30/06/24 18 Quality
Slide 19: Outlook 2024 (updated)
Aktia Q2 2024 Debt Investor Presentation Outlook 2024 (updated) Aktia's comparable operating profit for 2024 is expected to be higher than the EUR 104.8 million reported for 2023 The outlook has been prepared based on the following expectations: * Despite market uncertainty and a probable decline in
Slide 20: Credit ratings
Credit ratings
Slide 21: CET1 ratio improved slightly to 11.5%
Aktia 2 2024 Debt Investor Presentation 30/06/24 21 CET1 ratio improved slightly to 11.5% * CET1 ratio was 11.5% and 2.8 percentage points om x above the regulatory requirement. 6 * Regulatory CET1 own funds increased by 1“ 9 EUR 9.3 million, driven by increase in the fund at » ee ee Ce ne en fair v
Slide 22: Regulative requirements updated
Aktia Q2 2024 Debt Investor Presentation 30/06/24 Regulative requirements updated Aktia Bank Group's leverage ratio was 4.3% (Q4/2023 4.2%) as of 30 June 2024. © Tier 1 capital EUR 4536 million ® Total exposures EUR 10,5914 million On 17 April 2024 the Finnish Financial Stability Authority has updat
Slide 23: Success in funding activities
. 2.2024 Debt Investor Aktia Presentation Success in funding activities * Throughout H1/2024, the market has continued to be very active and supportive for new issuance. * During Q2/2024, Aktia issued one senior preferred private placement transaction and benchmark size Covered Bond. The EUR 500 mil
Slide 24: Sound funding profile
Aktia Q2 2024 Debt Investor Presentation Sound funding profile Borrowing from the public and public-sector entities was at EUR 4,4776 million. The value of bonds issued by Aktia Bank totalled EUR 4,084.7 (Q4/2023: 3,580.7) million. Aktia has EMTCN program of EUR 5 billion. All market-based funding i
Slide 25: Maturity profile, 30.6.2024
Maturity profile, 30.6.2024 1,500 1,400 1,300 1,200 • 1,100 1,000 900 mn euro 800 700 600 500 400 300 200 100 0 Under 1 M 1-3 M 3-6 M 6-9 M 9-12 M 1-2 Year 2-3 Year 3-4 Year 4-5 Year Over 5 Year Covered bonds issued TLTRO fin and oth sec funding AT1 capital loan Subordinated debentures Issued unsecu
Slide 26: High-quality liquidity reserve
Aktia Q2 2024 Debt Investor Presentation 30/06/24 26 High-quality liquidy reserve The Liquidity Coverage ratio (LCR) was 277% The unencumbered assets in the liquidity portfolio, which can be used Unencumbered Liquidity reserve, market value as a liquidity reserve, including cash EUR million 30 Jun 2
Slide 27: Low risk liquidity portfolio
Aktia Q2 2024 Debt Investor Presentation 30/06/24 27 Low risk liquidity portfolio The liquidity portfolio consists ; . Rating distribution 30 June 2024 of high-quality assets that can be used to meet liquidity requirements Other, no rating, 3.7% in stressed situations. Finnish municipalities; No rat
Slide 28: Aktia Bank as covered bond issuer
Aktia Q2 2024 Debt Investor Presentation 30/06/24 28 Aktia Bank as covered bond issuer Aktia Bank has issued the Covered bonds as mortgage bank under the former legislation (Act on Mortgage Credit Bank Operations, MCBA 688/2010) and under the new Finnish Covered bond legislation came into effect on
Slide 29: Covered bond collateral by region
Lappi 0.2% Pohjois-Pohjanmaa 3% Kainuu Keski-Pohjanmaa 1.5% Pohjanmaa Pohjois-Savo 10% 0.1% 0.2% Pohjois-Karjala Etelä-Pohjanmaa Keski-Suomi 0.1% 0.1% Etelä-Savo Pirkanmaa Satakunta 0.1% 6.3% Päijät-Häme Etelä-Karjala Kanta-Häme 0.3% Kymenlaakso 0,5% Varsinais-Suomi 0.4% 0.2% 11% Uusimaa 65% Ahvenan
Slide 30: Finland update
Aktia Finland update
Slide 31: Economic sentiment
Aktia Q2 2024 Debt Investor Presentation Economic sentiment Manufacturing industry — Outlook near future —Current situation Saldo 50 40 30 20 10 2012 2014 2016 2018 2020 2022 2024 Source: Aktia, Macrobond, EK. Construction — Outlook near future +—Current situation Saldo “50 51 2012 2014 2016 2018 20
Slide 32: Gross domestic product behind trend
Aktia Q2 2024 Debt Investor Presentation 30/06/24 32 Gross domestic product behind trend Finland, quarterly gross domestic product, 2015 prices —GDP —Trend 2015-2019 Billion EUR 64 63 63,0 62 61 60 59 58 57 57,2 56 55 54 53 52 a1 6 Q3) Qt 3 tt tS tt 2015 2016 2017 2018 2019 2020 2021 2022 2023-2024
Slide 33: Inflation pressure is easing
Aktia Q2 2024 Debt Investor Presentation 30/06/24 33 Inflation pressure is easing Finland, annual change in consumer and producer price indecies % 45 1 40 35 30 25 20 Producer price index, left 0 AM? hoy] 1 V . 15 Consumer price index, right 2 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2
Slide 34: Labour market is normalising
Aktia 2.2024 Debt Investor Presentation 30/06/24 34 Labour market is normalising Job openings, latest observation 06/2024 Number 150000 125000 100000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ‘Source: Aktia, Macrobond, Ministry of Economic Affairs & Employment of Fin
Slide 35: Finnish household indebtedness decreasing
Aktia Q2 2024 Debt Investor Presentation 30/06/24 35 Finnish household indebtedness decreasing Finnish households’ indebtedness rate Percent 140 130 125 % 120 110 100 90 80 70 60 50 40 30 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 20
Slide 36: Residential construction starts at lows
Aktia Q2 2024 Debt Investor Presentation 30/06/24 36 Residential construction starts at lows Residential construction activity Million m2, 12 month rolling sum 45 4,0 3,5 3,0 2,89 Completed 25 2,32 Starts 2,0 1,77 Permissions 1,5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ©2024 Lahde: Aktia,
Slide 37: Housing prices bottomed out?
Aktia Q2 2024 Debt Investor Presentation 30/06/24 37 Housing prices bottomed out? Price index of old blocks' of flats Index 2020=100 110.0 107.5 105.0 102.5 . . . Capital city region 100.0 Rest of Finland 97.5 95.8 93.7 92.0 90.0 Whole country Jan Apr Jul. = Oct.) Jans Apr Jul. = Oct. = Jan. Apr Jul
Slide 38: Housing market has been challenging
Aktia 2.2024 Debt Investor Presentation 30/06/24 38 Housing market has been challenging Annual change in prices of apartment blocks, 2024 Q2 Population projection, updated 9/2021 Index 2019=100 Percent —|-7 6 6 4 3 2 A 0 1150 One room nas 113 Tampere Po 111 oreater Helsink po 100 Two rooms ee 108 Ou
Slide 39: Housing market comparison
Aktia Q2 2024 Debt Investor Presentation 30/06/24 39 Housing market comparison Real House Prices, 170 160 150 140 130 120 110 100 90 so [Fintand] 2010 2011 2012-«-2013-_-«2074_~—«2OTS.-«2O1S-«2OTT.-—=«201B_-—«-2019-—«2020«-2027~—«2022 «2023 2024 Sources: Aktia and Macrobond
Slide 40: Building wealth for our customers and society
BOO Building wealth for our customers and society Timo Ruotsalainen, Head of Treasury +358 10 247 7211 timo.ruotsalainen@aktia.fi Aktia
Aktia Bank — Debt Investor Presentation (August 2024) on 6ix