Aktia Bank Plc Class A · OMXHEX:AKTIA
Aktia Bank Plc Class A — Q4 2023 Earnings Presentation
27 slides from Aktia Bank Plc Class A's earnings presentation, Feb 8, 2024
Slide 1: Q4 Results
8 FEBRUARY 2024 Q4 Results Juha Hammarén, CEO Outi Henriksson, CFO
Slide 2: Highlights Q4
Q4/2023 Results Presentation 8/2/24 2 Highlights Q4 • Strong performance continued in Q4 – driven by net interest income. • Margin improvement contributed to NII growth. • Assets under management grew and net commission income from asset management was solid. This was supported by changes in market
Slide 3: Business areas
Q4/2023 Results Presentation 8/2/24 3 Business areas
Slide 4: Corporate lending remains strong
Q4/2023 Results Presentation Banking Asset Management Life Insurance 8/2/24 4 Corporate lending remains strong • Corporate lending continued to grow, while Development of the Group’s credit portfolio Q-o-Q demand on the housing loan side was still low. EUR million EUR million 7 866 • The average mar
Slide 5: Assets under Management
Q4/2023 Results Presentation Banking Asset Management Life Insurance 8/2/24 5 Assets under Management • The market sentiment improved in Q4, after The Group’s Assets under Management, excluding custody disappointing early 2023 - specifically the EUR million Finnish equity market. 15 794 16 000 • Sho
Slide 6: Insurance service result improved from Q3
Q4/2023 Results Presentation Banking Asset Management Life Insurance 8/2/24 6 Insurance service result improved from Q3 Development of the actuarially calculated result Q-o-Q • Sales of risk life insurance policies continued to developed well. EUR million 10,0 9,1 • Sales of investment-linked insura
Slide 7: Aktia's sustainability in Q4/2023
Q4/2023 Results Presentation 8/2/24 7 Aktia’s sustainability in Q4/2023 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. Q4/2023 highlights Preparations for the upcoming
Slide 8: Sustainability-driven success for the leading wealth manager bank
Q4/2023 Results Presentation 8/2/24 8 Sustainability-driven success for the = 2025 target achieved leading wealth manager bank Prosperity People Principles of Governance Share of SFDR Article 8 and 9 Siqni Flame Index* SHE Index*** Aktia’s ESG ratings classified funds Target: 80 Target: 85 Target: r
Slide 9: Financial overview
Financial overview Outi Henriksson, CFO
Slide 10: Comparable operating profit growth in 2023 driven by net interest income
Q4/2023 Results Presentation 8/2/24 10 Comparable operating profit growth in 2023 driven by net interest income Comparable operating profit 2019–2023 EUR million 124.7 120 Q4 8.3 108,4 100 Q3 31.1 87.4 Q4 26.3 80 68.2 65.2 Q3 32.0 60 55.1 Q2 49.7 Q4 14.8 Q3 12.3 40 Q2 26.5 Q2 24.7 20 Q1 35.6 Q1 23.6
Slide 11: Financial summary Q4
Q4/2023 Results Presentation 8/2/24 11 Financial summary Q4 EUR million Q4/2023 Q4/2022 ∆% Q3/2023 ∆% 1-12/2023 1-12/2022 ∆% Total operating income 75,2 58,2 29 % 75,2 0% 291,0 302,9 -4 % Net interest income 38,9 24,2 61 % 39,5 -2 % 144,0 99,2 45 % Net commission income 29,8 29,1 2% 30,0 -1 % 120,4
Slide 12: Total operating income stable vs. Q3
Q4/2023 Results Presentation 8/2/24 12 Total operating income stable vs. Q3 • Interest income from lending continued its Comparable operating income, Q-o-Q strong growth, however cost of both EUR million market-based funding and deposits rose 98 • Net interest income grew by 61% from the comparison
Slide 13: Composition of the Group net interest income
Q4/2023 Results Presentation 8/2/24 13 Composition of the Group net interest income EUR million 110 38,9 39,5 90 33,8 70 31,8 84,7 91,8 50 24,2 71,2 Lending Liquidity portfolio 54,7 30 Other (mainly deposits in Bank of Finland) 39,5 1,1 3,3 Borrowing (incl. Deposits & covered bonds) 2,3 4,9 6,5 10 8
Slide 14: Net commission income mix
Q4/2023 Results Presentation 8/2/24 14 Net commission income mix EUR million 35 30,3 30,4 30,0 29,8 30 29,1 1,0 1,1 1,3 0,4 1,2 1,7 0,5 0,4 Other 0,5 2,1 2,2 2,2 2,1 2,1 0,4 25 6,3 6,2 6,3 Insurance 6,0 6,3 20 Lending 15 Card, payment services and borrowing 10 19,5 20,0 20,4 19,8 19,3 Mutual funds,
Slide 15: Comparable operating expenses under control
Q4/2023 Results Presentation 8/2/24 15 Comparable operating expenses under control • Comparable personnel costs rose Comparable operating expenses Q4/2023 vs Q4/2022 by 8% from Q4/22 to EUR 20.6 EUR million (19.1) million. This was mainly Other operating driven by variable pay changes IT expenses De
Slide 16: Comparable operating profit improved in all business segments
Q4/2023 Results Presentation 8/2/24 16 Comparable operating profit improved in all business segments • Comparable operating profit Comparable operating profit Q-o-Q improved significantly in EUR million Banking business and in 32,0 Asset Management, driven 45 26,3 3,6 mainly by net interest income 2
Slide 17: Quality of the credit portfolio remains solid
Q4/2023 Results Presentation 8/2/24 17 Quality of the credit portfolio remains solid • Loan book constitutes for the Change in expected credit losses (ECL) 1–12/2023 major part of loans to EUR million households with residential or real estate securities. Interest- Interest- bearing bearing • The lo
Slide 18: Balance sheet total EUR 12,037 million
Q4/2023 Results Presentation 8/2/24 18 Balance sheet total EUR 12,037 million Total assets Total liabilities and equity EUR million EUR million 14 000 14 000 12 412 12 412 Deposits from the public and 12 037 12 037 12 000 public-sector entities 12 000 Lending to the public and Wholesale deposits 10
Slide 19: CET1 ratio 3.6 percentage points above the regulatory requirement
Q4/2023 Results Presentation 8/2/24 19 CET1 ratio 3.6 percentage points above the regulatory requirement • CET1 ratio was 11.3%, improving by +0.3 percentage CET1 % % points from Q3/2023 and +0.5 percentage points 16 from Q4/2022. 14 9 • Risk-weighted assets increased by EUR 281 million 11,3 11,2 11
Slide 20: Funding activities
Q4/2023 Results Presentation 4/11/22 20 Funding activities • Market sentiment turned fairly positive towards the end of the fourth quarter. Long term interest rates fell quite significantly and opened also the longer maturities for issuance. Still vast majority of the focus was concentrated to the s
Slide 21: Outlook 2024
Q4/2023 Results Presentation 8/2/24 21 Outlook 2024 Aktia's comparable operating profit for 2024 is expected to be somewhat higher than the EUR 108.4 million reported for 2023. The outlook has been prepared based on the following assumptions: • Despite market uncertainty and a probable decline in in
Slide 22: Financial targets 2025
Q4/2023 Results Presentation 8/2/24 22 Financial targets 2025 Comparable Comparable return Comparable Common Equity operating profit on Equity (ROE) cost-to-income ratio Tier 1 capital ratio above EUR above 12% under 0.60 (CET1) above 1.5 120 million percentage points over the regulatory requirement
Slide 23: Appendices
Q4/2023 Results Presentation 8/2/24 23 Appendices
Slide 24: AuM: net subscriptions and market changes
Q4/2023 Results Presentation 8/2/24 24 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 AUM AUM AUM AUM AUM AUM AUM AUM AUM 12/2022 3/2023 6/2023 9/2023 12/2023 12/2022 3/2023 6/2023 9/2023 12/2023 Ne
Slide 25: AuM: net subscriptions and market changes
Q4/2023 Results Presentation 8/2/24 25 AuM: net subscriptions and market changes Asset Management, Private Banking Q-o-Q Asset Management, External channels Q-o-Q EUR million EUR million AUM AUM AUM AUM AUM AUM AUM AUM AUM AUM 12/2022 3/2023 6/2023 9/2023 12/2023 12/2022 3/2023 6/2023 9/2023 12/2023
Slide 26: AuM: net subscriptions and market changes
Q4/2023 Results Presentation 8/2/24 26 AuM: net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million AUM 12/2022 AUM 3/2023 AUM 6/2023 AUM 9/2023 AUM 12/2023 Net subscriptions Market changes
Slide 27: Building wealth for our customers and society
Q4/2023 Results Presentation 27 8/2/24 Building wealth for our customers and society Investor Relations contacts: ir@aktia.fi