Aktia Bank plc
Accounts Announcement January-December 2017
15.2.2018 at 8:00 a.m.
CEO Martin Backman
"Continued strong sales of mutual funds and asset management contributed to a 18 % higher net commission income in the fourth quarter than last year, amounting to EUR 23.7 (20.1) million. Simultaneously net income from life insurance business increased to EUR 7.4 (6.1) million. In the fourth quarter, also net interest income from borrowing and lending operations improved to EUR 17.3 (14.8) million. Returns from the bank's liquidity portfolio and interest rate hedges fell to EUR 6.4 (9.3) million, resulting in a decrease of total net interest income to EUR 21.8 ( 23.0) million. The comparable operating profit for the fourth quarter was EUR 11.4 (8.5) million, an increase of 34 %."
October - December 2017:
- Total operating income amounted to EUR 52.7 (50.6) million, with a continued increase of net commission income to EUR 23.7 (20.1) million.
- Net interest income from borrowing and lending amounted to EUR 17.3 (14.8) million. Net interest income was burdened by EUR 2.3 million lower returns from the liquidity portfolio in October-December and a decrease of EUR 0.6 million in interest rate hedges.
- Total operating expenses rose by 4 % to EUR 42.0 (40.5) million. Operating expenses excluding items affecting comparability was EUR 41.8 (39.5) million.
January - December 2017
- The comparable operating profit 2017 increased by 4 % to EUR 59.9 (57.5) million. The Operating profit was burdened by restructuring costs and was EUR 49.1 (61.5) million.
Dividend and Outlook:
- Following the improved Comparable Operating profit the Board of Directors propose a dividend of EUR 0.57 (2016; 0.60 of which EUR 0.08 derived from one-off gains) per share.
- Outlook for 2018: The comparable operating profit 2018 is expected to be approximately on the same level as the comparable operating profit in 2017 (see p. 19).
Key figures
| (EUR million) | 4Q2017 | 4Q2016 | ? % | 2017 | 2016 | ? % | 3Q2017 | 4Q/3Q | 2Q2017 | 1Q2017 |
| Net interest income | 21.8 | 23.0 | -5 % | 89.6 | 95.6 | -6 % | 21.5 | 1 % | 22.9 | 23.4 |
| Net commission income | 23.7 | 20.1 | 18 % | 91.4 | 79.7 | 15 % | 22.0 | 8 % | 24.6 | 21.1 |
| Total operating income | 52.7 | 50.6 | 4 % | 210.3 | 211.3 | -1 % | 50.3 | 5 % | 54.2 | 53.1 |
| Total operating expenses | -42.0 | -40.5 | 4 % | -160.7 | -148.4 | 8 % | -41.7 | 1 % | -39.7 | -37.3 |
| Write-downs on credits and other commitments | -0.4 | -1.5 | -71 % | -0.6 | -2.2 | -74 % | 0.0 | - | -0.1 | -0.1 |
| Operating profit | 10.3 | 8.6 | 19 % | 49.1 | 61.5 | -20 % | 8.0 | 28 % | 14.4 | 16.4 |
| Comparable operating profit1 | 11.4 | 8.5 | 34 % | 59.9 | 57.5 | 4 % | 15.7 | -27 % | 16.9 | 15.9 |
| Cost-to-income ratio | 0.80 | 0.80 | 0 % | 0.76 | 0.70 | 9 % | 0.83 | -4 % | 0.73 | 0.70 |
| Earnings per share (EPS), EUR | 0.12 | 0.10 | 22 % | 0.59 | 0.74 | -20 % | 0.10 | 23 % | 0.17 | 0.20 |
| Equity per share (NAV)2, EUR | 9.02 | 9.24 | -2 % | 9.02 | 9.24 | -2 % | 8.92 | 1 % | 8.84 | 9.34 |
| Return on equity (ROE), % | 5.5 | 4.2 | 30 % | 6.5 | 8.0 | -19 % | 4.4 | 25 % | 7.4 | 8.7 |
| Common Equity Tier 1 capital ratio2, % | 18.0 | 19.5 | -7 % | 18.0 | 19.5 | -7 % | 17.3 | 4 % | 18.0 | 18.2 |
| Capital adequacy ratio2, % | 23.4 | 26.3 | -11 % | 23.4 | 26.3 | -11 % | 22.9 | 2 % | 24.3 | 24.8 |
| Dividend per share (proposal from Board of Directors) | 0.57 | 0.60* | -5 % |
1 Alternative performance measures excluding items affecting comparability, see page 20, 2 At the end of the period. *EUR 0.08 of the dividend derived from one-off gains.
AKTIA BANK PLC
Board of Directors
CEO Martin Backman, tel. +358 10 247 6250
CFO Outi Henriksson, tel. +358 10 247 6250
Media: Malin Pettersson, tel. +358 10 247 6369
Investors: Anna Gabrán, tel. +358 10 247 6501, ir(at) aktia.fi
Distribution:
Nasdaq Helsinki,
mass media,
www.aktia.com
Aktia provides a broad range of solutions within banking, asset management, insurance and real estate agency. Aktia operates mainly in coastal areas and inland growth areas. Aktia has about 380,000 customers who are served at branch offices and via web, mobile interfaces as well as telephone services. Aktia's shares (AKTAV, AKTRV) are listed on the list of Nasdaq Helsinki Ltd. For more information about Aktia see www.aktia.com
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