Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Aktia Pankki — Q1 2024 Earnings Presentation
29 slides from Aktia Bank Plc Class A's earnings presentation, Apr 30, 2024
Slide 1: Q1/2024 Results Presentation, Aktia
Juha Hammarén, CEO Outi Henriksson, CFO
Slide 2: Highlights Q1
Aktia Highlights Q1 Q1/2024 Results Presentation * — Aktia's strong performance continued in Q1. ee Eee : == = * Good comparable operating profit, driven by a high net interest income. ¢ Important key metrics such as C/I ratio and ROE improved. ¢ Assets under management increased slightly and net co
Slide 3: Business areas
Slide 4: NII supported by corporate lending
Aktia Q1/2024 Results Presentation Banking Asset Management Life Insurance 30/4/24 4 NII supported by corporate lending * Strong net interest income, driven by interest income from lending and growth in profitable financial solutions. ¢ Demand for hire purchase and leasing financing remained strong.
Slide 5: Assets under Management grew slightly
Aktia 1/2024 Results Presentation Banking Asset Management Life Insurance 30/4/24 Assets under Management grew slightly * AuM grew slightly in Q1, as market environment remained mainly positive. * Growth was supported by strong net sales in the banking business and in Private Banking. * Total net su
Slide 6: Insurance service result remained solid
Aktia 1/2024 Results Presentation Banking Asset Management Life Insurance 30/4/24 6 Insurance service result remained solid * — Sales of risk life insurance policies continued Development of the actuarially calculated result Q-o-Q to developed well. . . . EUR million * — Sales of investment-linked i
Slide 7: Aktia's sustainability in Q1/2024
Aktia 1/2024 Results Presentation 30/4/24 7 Aktia’s sustainability in Q1/2024 Our mission is to build wealth for our customers and society, not only today but also for generations to come. The financial sector can play a major role in the green transition. Q1/2024 highlights New active ownership met
Slide 8: Sustainability-driven success for the leading wealth manager bank
Aktia 1/2024 Results Presentation 30/4/24 8 ° oye e Sustaina bility-d riven success for the ~ 2026 target achieved leading wealth manager bank Prosperity & Planet People Principles of Governance Share of SFDR Article 8 and 9 classified funds QO Siqni Flame Index* 229 SHE Index*** Aktia’s ESG ratings
Slide 9: Financial overview
miatelavelts) overview Outi Henriksson, CFO Aktia
Slide 10: Comparable operating profit growth driven by strong NII and good cost control
Aktia 01/2024 Results Presentation 30/4/24 10 Comparable operating profit growth driven by strong NIl and good cost control Comparable operating profit 2020-2024 EUR million 1247 120 + 108.4 100 F 874 04263 80 F 652 Q3 32.0 60 55.1 “ 40 02265 20 Q1236 fo} 2020 2021 2022* 2022"* 2023 2024 * Reported
Slide 11: Financial summary Q1
Aktia 1/2024 Results Presentation Financial summary Q1 EUR million Q1/2023 A% Q4/2023 A% Total operating income 3 70.3 10% 75.2 3% Net interest income 391, 318 23% 38.9 0% Net commission income 301 30.3 0% 298 % Net income from life insurance 77 72 T% 60 27% Other income 04 10 59% 05 -7% Total opera
Slide 12: Total operating income 10% above last year
Aktia 1/2024 Results Presentation 30/4/24 12 Total operating income 10% above last year * Top line growth driven by NII and strong Comparable operating income, Q-o-Q income from life insurance in Q1. EUR million * — Interest income from lending has been 98 supported by favorable margin development a
Slide 13: Composition of the Group net interest income
Aktia 01/2024 Results Presentation 30/4/24 8 Composition of the Group net interest income EUR million 389 39.1 10 395 90 33.8 70 318 50 = Lending Liquidity portfolio 30 33 = Other (mainly deposits in Bank of Finland) 49 58 [ 7 65 | Borrowing (incl. Deposits & covered bonds) 10 : 80 87 18 Senior fina
Slide 14: Net commission income mix
Aktia 1/2024 Results Presentation 30/4/24 % Net commission income mix EUR million 35 303 30.4 30.0 298 304 30 14 17 17 19 Other 25 61 61 62 59 ™ Lending 20 4a 35 36 35 Card, payment services and borrowing 6 ™ Asset management and securities 10 brokerage = Mutual funds 5 ° Q1/2023 Q2/2023 Q3/2023 Q4/
Slide 15: Despite high inflation, operating expenses are well under control
Aktia Q1/2024 Results Presentation 30/4/24 15 Despite high inflation, operating expenses are well under control Efficiency improvements now visible in personnel expenses and other operating expenses — despite high inflation last year. IT expenses increased by 19% compared to last year, mainly reflec
Slide 16: Quality of the credit portfolio is solid
Aktia * Loan book constitutes for the major part of loans to households with residential or real estate securities. * The loan-to-value (LTV) ratio remained at a healthy level (42%). * Credit loss provisions in Q1 remained at a moderate level CEUR -2.7 million). Growth in credit card business has so
Slide 17: Balance sheet total EUR 12,107 million
Aktia Q1/2024 Results Presentation Balance sheet total EUR 12,107 million Total assets ™ Lending to the public and public-sector entities = Liquidity portfolio Life insurance assets incl. Unit Link ™ Deposits and current account in Bank of Finland Other assets EUR million 14,000 12,037 12,107 12,000
Slide 18: Structure of lending and deposits
Aktia Q1/2024 Results Presentation 30/4/24 18 e e Structure of lending and deposits Lending Deposits 69; 1% 364; 8 % 65;1% 1,231, 16% ™ Households ™ Households Total ™ Corporates Total ™ Corporates 7,885 (7,866) EUR milion 1,462; 19% 5,123; 65% ™ Housing associations ™ Public entities and non- profi
Slide 19: CET1 ratio 3.7 percentage points above the regulatory requirement
Aktia 1/2024 Results Presentation CET1 ratio 3.7 percentage points above the regulatory requirement * CET1 ratio was 11.4%, thus improved 0.1 percentage points from Q4/2023 and 0.3 percentage points from Q1/2023. * Regulatory CET1 own funds increased by EUR 6.8 million, including: * Increase in the
Slide 20: Future changes in the regulatory requirements regarding capital adequacy
Aktia 01/2024 Results Presentation Future changes in the regulatory requirements regarding capital adequacy * FIN-FSA decided to adjust the discretionary additional capital requirement (Pillar 2) down to 1.00% for Aktia (currently 1.25% and valid until further notice as of 30 September 2024). * As p
Slide 21: Funding activities
Aktia 1/2024 Results Presentation Funding activities * Through the first quarter of 2024, the market has remained very strong, and issuance of covered bonds in particular has been very active. Also, senior and subordinated debt markets have performed strongly. ¢ During Q1/2023, Aktia completed six s
Slide 22: Outlook 2024 (updated)
Aktia 01/2024 Results Presentation Outlook 2024 (updated) 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 uncertainty and a proba
Slide 23: Financial targets 2025
Aktia Financial targets 2025 Q1/2024 Results Presentation 30/4/24 Comparable operating profit above EUR 120 million 1-3/2024: EUR 33.9 1-12/2023: EUR 108.4 Comparable return on Equity (ROE) above 12% 31 March 2024: 11.4% 31 December 2023: 14.0% Comparable cost-to-income ratio under 0.60 1-3/2024: 0.
Slide 24: Appendices
Aktia Q1/2024 Results Presentation 30/4/24 24 Appendices
Slide 25: AuM: net subscriptions and market changes
Aktia Q1/2024 Results Presentation 30/4/24 25 AuM: net subscriptions and market changes Asset Management, Aktia UI Q-0-Q Asset Management, Domestic institutions Q-o-Q EUR million EUR million 1,279 65 a 1,220 6 323 a 26 “99 6.257 -131 125 6,234 6,154 90 6,150 -129 | | “44 wd, _328 = 902 29 913 -304 2
Slide 26: AuM: net subscriptions and market changes
Aktia 01/2024 Results Presentation 30/4/24 26 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 4,549 361 1 360 ao 4419 2 Ze. | = = I mm 4,398 5 4 4,407 mom 3 4,329 22 7 335 9 336 “17 14 332 = | AUM
Slide 27: AuM: net subscriptions and market changes
Aktia 01/2024 Results Presentation 30/4/24 27 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million 812,132 24 a 280 2,027 1,751 _4 _4 1,758 mmm 1,743 _4 0 “15 AUM 3/2023 AUM 6/2028 AUM 9/2028 AUM 12/2023 ‘AUM3/2024 Minet subscriptions ll Market changes
Slide 28: Sound funding profile
Aktia 1/2024 Results Presentation 30/4/24 28 Sound funding profile Customer deposits 48.8% Covered bonds 16.0% Senior debt 23.4% Short term + REPOs 91% Subordinated dept ECB (TLTRO) 11% 1.6%
Slide 29: 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