Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q4 2021 Earnings Presentation
26 slides from Aktia Bank Plc Class A's earnings presentation, Feb 16, 2022
Slide 1: Q4 Results
16 FEBRUARY 2022 Q4 Results Mikko Ayub CEO Outi Henriksson CFO
Slide 2: The best year in the history of Aktia
The best year in the history of Aktia HIGHLIGHTS • Comparable operating profit up 59% to EUR 87.4 (55.1) million in 2021 • Aktia’s comparable operating income for 2021 increased to EUR 263.2 (201.1) million and comparable expenses to EUR 171.1 (141.9) million • Growth in all income categories during
Slide 3: Comparable operating profit at all-time-high
Comparable operating profit at all-time-high COMPARABLE OPERATING PROFIT 2017─2021 EUR million 100 90 87.4 +59% 80 Q4 20.7 68.2 70 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 Q4 2021 Results Presentation 16 February 2022 3
Slide 4: Financial summary Q4 and YTD
Financial summary Q4 and YTD EUR million 4Q2021 4Q2020 % 1-12/2021 1-12/2020 , % Total operating income 65.5 57.0 15% 263.8 201.1 31% Net interest income 24.1 20.8 16% 96.2 80.7 19% Net commission income 33.7 25.4 33% 124.0 97.6 27% Net income from life insurance 7.6 10.2 -26% 37.7 19.9 89% Other
Slide 5: Growth driven by corporate lending continues
Growth driven by corporate lending continues BANKING BUSINESS • Loan book growth 7% in 2021 EUR million EUR million • Growth in corporate customers 15% in 2021 700 8,000 • Driven by SME lending 600 7,413 7,486 7,299 • Good demand for mortgage loans throughout the 500 7,139 year 400 7,000 7,000 • Foc
Slide 6: Good performance within Private Banking
Good performance within Private Banking ASSET MANAGEMENT Assets under Management, excluding custody • AuM up 48% to EUR 15.5 billion EUR million • Supported by the acquisition of Taaleri Wealth 16,000 15,581 15,451 Management 14,000 • Good growth in Private Banking continued 12,000 9,853 10,447 10,0
Slide 7: Life Insurance business had a strong year
Life Insurance business had a strong year LIFE INSURANCE • The actuarially calculated result for Q4 amounted EUR million to EUR 3.2 (1.8) million 6.0 5.2 • Continued growth in sales of unit-linked and 5.0 personal insurances 4.4 4.0 • Unit-linked AuM at an all-time high at year-end 3.5 3.2 • Risk in
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 1–12/2021; 31 December 2021; 1–12/
Slide 11: Financial overview
Aktia Q4 2021 Results presentation Financial overview Outi Henriksson CFO Aktia Q4 2021 Results Presentation 16 February 2022 11
Slide 12: A year of strong growth in all business areas
A year of strong growth in all business areas COMPARABLE OPERATING INCOME, Q-O-Q Comparable operating income EUR million • Net interest income growth from lending continued 80 strong, driven specifically by corporate (SME) segment. 73.3 70 3.4 66.5 65.5 Household margin development on new loans turn
Slide 13: A year of strong growth in all business areas
A year of strong growth in all business areas COMPARABLE OPERATING PROFIT, Q-O-Q Comparable operating profit EUR million • Banking business profitability has improved quarter on 30 quarter, Q1 and Q2 expenses affected by stability fee 26.0 (2,4M and 1,2M respectively). 25 23.8 6.8 1.8 20.7 Centralis
Slide 14: Solid performance across operations
Solid performance across operations COMPARABLE OPERATING PROFIT 2020 - 2021 +27% underlying profit growth (without unrealised value changes) EUR million Comparable Net interest Actuarially Other net income Operating Other operating profit income excl. calculated result from investments expenses 1–12
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 Transaction Market Net AUM Market 12/2020 changes subscriptions 6/2021 changes subscriptions 12/2021 12/2020 c
Slide 16: AuM: net subscriptions and market changes
AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million AUM Market Organisational Market Net AUM Market 12/2020 changes adjustments changes subscriptions 9/2021 changes Net AUM Net AUM Market Net AUM subscriptions 3/2021 subscriptions 6/2021 changes subscriptions 12/2021
Slide 17: Growth in both income and expenses after Taaleri wealth management acquisition
Growth in both income and expenses after Taaleri wealth management acquisition COMPARABLE INCOME 2020–2021 COMPARABLE EXPENSES 2020–2021 EUR million EUR million Comparable Net commission Other operating Comparable IT Resolution Other operating operating income income income operating expenses expens
Slide 18: Change in expected credit losses (ECL) 1–12/2021
Change in expected credit losses (ECL) 1–12/2021 EUR million Impairment of credits and other commitments 1–12/2021 EUR -4.5 million • Impairments on credits and other commitments increased to EUR -4.5 (-4.0) million, of which the change in the allowance for model-based credit losses (ECL) amounted t
Slide 19: Balance sheet total increased to EUR 11,653 million
Balance sheet total increased to EUR 11,653 million 31 DECEMBER 2021 Total assets Total liabilities and equity EUR million EUR million 11,653 11,653 10,573 10,573 Deposits from the 10,000 10,000 public 4,503 Lending to the public Liabilities to central 8,000 4,466 7,486 and public-sector 8,000 banks
Slide 20: CET1 ratio 3.5 percentage points above the requirement
CET1 ratio 3.5 percentage points above the requirement CET1 • The CET1 ratio was 11.2% and increased during the % % last quarter by 0.8 percentage points. 20 18 9 • The 2021 dividend proposed by the Board of 16 14.7 15.9 15.7 15.6 14.0 13.8 Directors, EUR 0.56 per share, has been deducted 14 11.3 11
Slide 21: Funding activities
Funding activities • During the year 2021, Aktia completed 20 senior preferred private placement transactions. The total volume has been approximately EUR 305 million with maturities in the range of 3–15 years. The bank will continue to issue senior debt during the year 2022 to refinance redeeming n
Slide 22: Outlook 2022
Outlook 2022 The comparable operating profit for 2022 is expected to be somewhat higher than in 2021 provided that the market development and circumstances in society remain stable. • Net interest income growth is expected to remain strong, especially in the corporate customer segment, due to active
Slide 23: Appendices
Aktia Q4 2021 Results presentation Appendices Aktia Q4 2021 Results Presentation 16 February 2022 23
Slide 24: Net interest income mix
Net interest income mix EUR million 30 27.7 23.4 22.9 3.9 24.1 25 21.5 21.8 23.5 23.1 3.9 3.6 20.7 20.8 21.3 0.5 0.3 0.4 0.7 21.0 20.7 20.1 20.0 0.6 0.5 1.4 0.4 1.1 3.5 3.4 3.3 3.3 2.8 19.4 19.2 19.6 19.3 19.7 0.6 0.6 1.5 1.4 1.2 2.0 1.2 0.8 0.5 1.6 20 4.6 3.8 1.7 1.3 1.6 1.5 0.7 1.4 1.4 1.7 3.4 3.1
Slide 25: Net commission income mix
Net commission income mix EUR million ◼ Other 35 33.5 33.7 ◼ Insurance 31.7 1.0 1.4 ◼ Lending 0.6 0.6 1.4 2.4 2.5 ◼ Card, payment services and borrowing 30 0.5 2.7 ◼ Mutual funds, asset management 25.4 25.0 5.4 25.0 5.5 and securities brokerage 25 1.5 1.3 5.5 0.3 0.3 2.4 2.2 20 5.4 5.4 15 24.2 23.8
Slide 26: 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