Aktia Bank PLC Class A · OMXHEX:AKTIA
Aktia Bank PLC Class A — Debt Investor Presentation (2018)
31 slides from Aktia Bank PLC Class A's debt investor presentation, 2018
Slide 1: Aktia Bank
AKTIA BANK
Slide 2: Executive Summary – Aktia Bank Plc
EXECUTIVE SUMMARY– AKTIA BANK PLC Retail bank with focus on growth areas in Finland Provides services mainly to private customers, small and middle sized companies and institutional investors Business supported by own branch network and covering digital services Households accounts for 81 % of the l
Slide 3: Presentation Outline
Presentation Outline Overview - Aktia Group . Financial key figures . Credit ratings . The Finnish Economy . Contacts Appendix
Slide 4: Banking, Asset Management and Insurance Services to Over 300,000 Customers
BANKING, ASSET MANAGEMENT AND INSURANCE SERVICES TO OVER 300,000 CUSTOMERS Aktia Bank Plc (2017) Operating income EUR 210.3 million Operating profit EUR 49.1 million Assets EUR 9,550 million Market cap EUR 631 million (~40 000 shareholders) Banking Operating profit EUR 33.5 million v Market share in
Slide 5: Group Structure
GROUP STRUCTURE Aktia Bank plc (listed on NASDAQ Helsinki) 100 % Aktia Life Insurance Ltd v 100 % Aktia Fund Management Company Ltd 100 % Aktia Real Estate Agency 76 % Aktia Asset Management Ltd* 100 % Aktia Corporate Finance Ltd 100 % Aktia Finance Ltd *Minority shares used as incentives for key pe
Slide 6: Asset Management, Winning Wealth Management
ASSET MANAGEMENT, WINNING WEALTH MANAGEMENT Morningstar Awards • Best Finnish Fund House, Fixed Income 2016, 2017 • Best Fund House, Fixed Income 2013, 2014 and 2015 • Best Balanced Fund (Aktia Secura) 2015 • TOP 3 Fixed Income Fund (Aktia Corporate Bond) 2015, 2016, 2017 • TOP 3 Multi Asset Manager
Slide 7: The Cornerstones of Aktia's Strategy
THE CORNERSTONES OF AKTIA’S STRATEGY PREFERENCE CUSTOMERS INCREASE AND SECURE OUR We provide tailored solutions for investments and financing in CUSTOMERS’ WEALTH an easy and sustainable way. PREMIUM CUSTOMERS v We enhance our specialist organisation and offer our customers advanced services and ind
Slide 8: The Change Is an Opportunity
THE CHANGE IS AN OPPORTUNITY Changes in operational environment and customer behaviour We will offer best customer experience with combination of individual and unique services and easily accessible digital services v We will enhance and safeguard our customers wealth by focusing at wealth managemen
Slide 9: Customer Focus Groups
CUSTOMER FOCUS GROUPS 70 % of Finnish Citizens would prefer Financial Advisory v 40% of Aktia Customers have dedicated advisor – it’s the highest proportion in Finland Customer Service: Digital Services and Sales Personal Advisory, Digital Services and Call Center personal services
Slide 10: Strengths of Our Business Model
STRENGTHS OF OUR BUSINESS MODEL BRAND Service-model Unique customer Focused experience customergroups v RELIABLE TRUST Competitive Selection Fluent Execution of Services User friendly Personal digital platforms service SUSTAINABLE
Slide 11: Financial key figures – Aktia Bank plc
Financial key figures – Aktia Bank plc
Slide 12: Capital Adequacy
CAPITAL ADEQUACY New core banking system increased intangible assets Dividend pay-out Growth in corporate lending increased risk-weighted assets by EUR 83m v Common Equity Tier 1 capital ratio, % 22.2 Change in CET1% 19.5 18.0 CET1 % 31.12.2016 19.5% Increased intangible assets and -0.7 percentage p
Slide 13: Results 2017
RESULTS 2017 EUR million 1-12/2017 1-12/2016 change % Net Interest Income 89.6 95.6 -6% Net Commission Income 91.4 79.7 15% Total Operating Income 210.3 211.4 -1% Total Operating Expenses -160.7 -148.4 8% Write-Downs -0.6 -2.2 -74% Operating Profit 49.1 61.5 -20% Profit for the period 39.3 49.3 -20%
Slide 14: Assets and Liabilities
ASSETS AND LIABILITIES Aktia Group EUR million ASSETS 31.12.2017 LIABILITIES 31.12.2017 Loans to public 5,839 61 % Demand deposits 3,930 41 % Mortgage loans (households) 3,971 Time deposits 188 2% Corporate loans 592 Long-term issues to retail market 235 2% Loans to Housing Companies 491 Senior debt
Slide 15: Structure of Lending and Deposits
STRUCTURE OF LENDING AND DEPOSITS BUSINESS STRONGLY SUPPORTED BY HOUSEHOLDS Lending Deposits 2017, EUR 5,839 million 2017, EUR 4,119 million (2016, EUR 5,717 million) (2016, EUR 4,164 million) v 15 15
Slide 16: Prudent and Low Risk Lending Policy
PRUDENT AND LOW RISK LENDING POLICY Aktia Bank operates under Non-performing loans more than 90 days overdue strict origination criteria: • Identification of the customer mandatory • Responsible lending: customer v ability to pay stress tested • Credit personnel internally educated and examined • Ra
Slide 17: High Quality Liquidity Portfolio
HIGH QUALITY LIQUIDITY PORTFOLIO • At the end of December the Bank Group’s liquidity buffer was approximately equivalent to the estimated outgoing cash flow of finance from the wholesale market for 33 months • Aktia meets LCR requirement with margin (31.12.2017; 161 %) 31.12.2017 31.12.2016 1% 15 %
Slide 18: Sound Funding Profile
SOUND FUNDING PROFILE DEPOSITS AND COVERED BONDS DOMINATE Long term debt December 2017 Wholesale Nominal Funding, EUR million Value Funding profile 2017 Covered bonds 1 565 EUR 7,377 million (2016; EUR 7,254 million) EMTN Program 565 Domestic Program 235 Schuldschein 204 Other Funding * 543 v * RCB,
Slide 19: Aktia Bank Plc, a Mortgage Bank
AKTIA BANK PLC, A MORTGAGE BANK Aktia Bank operates under the current legislation as mortgage bank (Act on Mortgage Credit Bank Operations, MCBA 688/2010) and issues the covered bonds directly from the bank’s balance sheet. • The Aktia Bank mortgage loan portfolio is of very high quality: ✓ Only pri
Slide 20: Cover Pool 2, December 2017
COVER POOL 2, DECEMBER 2017 Asset Pool Total EUR 1,879m (no substitute assets) No of loans / average loan balance 30,815 / EUR 60,976 Types of loans First ranking residential mortgages and pledges of shares in housing companies Geography Finland only, well diversified with concentration on growth ar
Slide 21: Cover Pool 1, December 2017
COVER POOL 1, DECEMBER 2017 Asset Pool Total EUR 231m (no substitute assets) No of loans / average loan balance 2,869 / EUR 80,653 Types of loans First ranking residential mortgages and pledges of shares in housing companies Geography Finland only, well diversified with concentration on growth areas
Slide 22: Credit Ratings
Credit Rat ae i) =< <x
Slide 23: Aktia Bank Credit Ratings
AKTIA BANK CREDIT RATINGS Senior: A3 / P-2, positive outlook Covered Bonds: Aaa v Senior: A- / A-2, stable outlook For full rating reports please see http://www.aktia.com/en/velkasijoittajat/luottoluokitus 23
Slide 24: The Finnish Economy
The Finnish economy
Slide 25: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT OPEN ECONOMY WITH STABLE INSTITUTIONS FINLAND • Population: 5.5 million • Area: 338 430 sq. km v • GDP per capita EUR 38 959 (2016) Finland: Supply and demand 2016 • Finland is rated: € billion % of GDP Aa1 (stable) / AA+ (stable) / AA+ (stable) GDP 214.1 100.0 Imports 78.3
Slide 26: The Finnish Economy
THE FINNISH ECONOMY SUBSTANTIAL PART OF EXPORTS OUTSIDE THE EU Exports by country (2016) Exports by product group (2016) v Source: National Board of Customs, Statistics Finland
Slide 27: Macroeconomic Environment
MACROECONOMIC ENVIRONMENT GDP, world GDP growth, Finland Index 2008 Q1 = 100 % v World imports (6 months, ma) Unemployment rates, Europe % % Source: Aktia Bank and Macrobond
Slide 28: Housing Market
HOUSING MARKET Share of housing loans in the income Development of prices of old dwellings in housing of household-dwelling units with companies quarterly, index 2010=100 housing loans in 2002 to 2014 v Source: Statistics Finland 28
Slide 29: Contacts
Contacts
Slide 30: Contacts and Additional Information
CONTACTS AND ADDITIONAL INFORMATION Timo Ruotsalainen Head of Treasury Tel. +358 10 247 7211 timo.ruotsalainen@aktia.fi v Anna Gabrán Investor Relations Tel. +358 10 247 6501 anna.gabran@aktia.fi Debt investor information: http://www.aktia.com/en/velkasijoittajat (website) http://www.aktia.com/en/ju
Slide 31: Aktia
Aktia