Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Aktia Pankki — Q2 2024 Earnings Presentation
31 slides from Aktia Bank Plc Class A's earnings presentation, Aug 2, 2024
Slide 1: Aktia 2/2024 Results Presentation
Aleksi Le Outi Henriksson, CFO
Slide 2: Key takeaways from first two months as CEO
Aktia 2/2024 Results Presentation 2/8/24 2 Key takeaways from first two months as CEO Truly professional and committed colleagues Strong and well-functioning customer relationships Inspiring purpose: “Building wealth for our customers and society” Large potential on many fronts within our business a
Slide 3: Highlights Q2
Aktia 2/2024 Results Presentation 2/8/24 3 Highlights Q2 * Quarterly performance was once again strong. ¢ Financial result improved in all business areas. ¢ Aktia and Swedbank entered into a strategic partnership at the end of May. ¢ We launched Aktia Velkarahastot II Ky (Private Debt Fund) in June
Slide 4: Q2 in short
Aktia 2/2024 Results Presentation 2/8/24 4 Q2 in short * 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. ¢ AuM increased to EUR 14.1 billion in Q2 driven by favourable m
Slide 5: Strong performance compared to last years
Akt la 2/2024 Results Presentation 2/8/24 5 Strong performance compared to last years Comparable operating profit 2020-2024 EUR million 1247 120.0 104.8 100.0 87.4 04256 80.0 65.2 647 60.0 55.1 ese 40.0 02256 20.0 1226 0.0 r r r r 2020 2021 2022 2028 2024 Restated according to the accounting standar
Slide 6: Business areas
Business areas
Slide 7: Banking: NII continued to develop positively
Aktia 2/2024 Results Presentation Banking Asset Management Life Insurance 2/8/24 7 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 : : , . . . ili l
Slide 8: Assets under Management increased in Q2
Akt la 2/2024 Results Presentation Banking Asset Management Life Insurance 2/8/24 8 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 * Negati
Slide 9: Life insurance business delivered a solid result
Aktia 2/2024 Results Presentation Banking Asset Management Life Insurance 2/8/24 Life insurance business delivered a solid result * — Sales of risk life insurance policies remained as Development of the actuarially calculated result Q-o-Q strong level as in the previous quarters. an EUR million * —
Slide 10: Aktia committed to SBTi requirements in Q2
Akt la 2/2024 Results Presentation 2/8/24 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 wants to b
Slide 11: Sustainability-driven success for the leading wealth manager bank
Aktia 2/2024 Results Presentation Sustainability-driven success for the leading wealth manager bank Prosperity & Planet People 2/8/24 " = 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) Q2/2023 95.3%
Slide 12: We are on track to meet our financial targets 2025
Aktia Q2/2024 Results Presentation 2/8/24 We are on track to meet our financial targets 2025 Comparable operating profit above EUR 120 million 1-6/2024: EUR 64.7 million 1-12/2023: EUR 104.8 million Comparable return on equity (ROE) above 12% 30 June 2024: 16.1% 31 December 2023: 13.6% Comparable co
Slide 13: Financial overview
miatelavelts) overview Outi Henriksson, CFO Aktia
Slide 14: Financial summary
Aktia 2/2024 Results Presentation Financial summary EUR million Q2/2023 A% Q1/2024 A% 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 74 57 29% 77 4%
Slide 15: Total operating income 11% above last year
Aktia 2/2024 Results Presentation ¢ Nil remained strong and grew by 18% from last year, thanks to favourable margin development driven specifically by growth in profitable financing solutions and still relatively high reference rates. * Net commission income was at the same level as in the previous
Slide 16: Composition of the Group net interest income
Akt la 2/2024 Results Presentation 2/8/24 16 Composition of the Group net interest income -30 + -50 F EUR million 39.1 38.8 10 38.6 38.2 90 b 32.8 7O F 50 = Lending Liquidity portfolio 30 F 49 65 = Other (mainly deposits in Bank of Finland) 10 81 / 7 80 ma oO = Borrowing (incl. Deposits & covered bo
Slide 17: Net commission income grew slightly
Aktia 02/2024 Results Presentation 2/8/24 7 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 management and se
Slide 18: Good cost control despite higher IT spend and inflation
Akt la 2/2024 Results Presentation 2/8/24 18 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 expenses | 44.1 11 * IT expens
Slide 19: 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 Results Presentation 2/8/24 19 Quality of th d
Slide 20: Balance sheet increased to EUR 12,367 million
Aktia Q2/2024 Results Presentation 2/8/24 20 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 incl. Uni
Slide 21: Households account for the majority of lending and deposits
Aktia 2/2024 Results 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 organisations 3,02
Slide 22: CET1 ratio improved slightly to 11.5%
Akt la 2/2024 Results Presentation 2/8/24 22 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 value CE
Slide 23: Year 2023 financial reporting has been revised due to a technical error
Aktia 02/2024 Results Presentation Year 2023 financial reporting has been revised due to a technical error ¢ Aktia’s reported net interest income and thus the result for 2023 was revised in June 2024. * This was due to a correction of the credit interest of a limited number of corporate accounts. *
Slide 24: Success in funding activities
Aktia 02/2024 Results 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 million 5- yea
Slide 25: Outlook 2024 (updated)
Aktia 2/2024 Results 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 intere
Slide 26: Building wealth for our customers and society
BOO Building wealth for our customers and society Investor Relations contacts: Oscar Taimitarha Director, Investor Relations +358 40 562 2315 oscartaimitarha@aktia fi Aktia
Slide 27: Appendix
Aktia 2/2024 Results Presentation 2/8/24 27
Slide 28: AuM: net subscriptions and market changes
Akt la 2/2024 Results Presentation 2/8/24 28 AuM: net subscriptions and market changes Asset Management, Aktia UI Q-0-Q Asset Management, Domestic institutions Q-o-Q EUR million EUR million 1,220 1 2 26 50 6,298 6.257 125 6,234 12 928 — = 902 29° 913 6,154 90 6,150 “304 "24.2 - = -129 | | 3 -44 _5 7
Slide 29: AuM: net subscriptions and market changes
Akt la 2/2024 Results Presentation 2/8/24 29 AuM: net subscriptions and market changes Asset Management, Private Banking Q-0-Q Asset Management, External channels Q-o-Q EUR million EUR million 115 4,549 360 a __ 4,506 | a1 2 7 346 26 4419 2 335 ~~ 4398 5 4. 4,407 | “17 -22 AUM AUM AUM AUM AUM AUM AU
Slide 30: AuM net subscriptions; Sound funding profile
Aktia 2/2024 Results Presentation AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million 33 2,188 et 2132 am 260 2,027 am TSB es 1,743 _4 “15 AUM 6/2023 AUM 9/2023 AUM 12/2023 AUM 3/2024 AUM 6/2024 Minet subscriptions ll Market changes 2/8/24 30 Sound funding profile Ca
Slide 31: Previous outlook for 2024 (30 April 2024)
Aktia 02/2024 Results Presentation Previous outlook for 2024 (30 April 2024) Aktia's comparable operating profit for 2024 is expected to be somewhat higher or higher than the EUR 108.4 million reported for 2023. The outlook has been prepared based on the following expectations: * Despite market unce