Aktia Bank Plc
Stock Exchange Release
February 14, 2019 at 8 a.m.
Aktia Bank Plc Accounts Announcement January–December 2018
Solid growth despite a challenging market during 2018
Mikko Ayub, CEO:
In 2018, we continued to implement our new strategy and the guidelines for the business were clarified. Now that we are starting a new year I have all the reason to be satisfied and proud of the success our company has reached. The Group’s comparable operating profit for 2018 was EUR 65.4 million and increased by 9% from 2017. Especially the increased net commission income contributed to the growth, but also the development of expenses moved in the right direction. Operating expenses decreased by 11% during 2018 compared to the previous year, which supports our target to be a more efficient and profitable bank and consequently secure our competitiveness in a constantly changing business environment.
There are now many uncertainty factors on the market – both global and European – and the economic growth in Finland is also expected to slow down. The end of last year was characterized by strong moves on the stock market, which was reflected in Aktia’s profit development during the last quarter, especially in the Group’s commission income. All of this and the continued low interest rate level made the market challenging for us during the fourth quarter.
With the new year, we are going for growth by developing our core business according to the chosen strategy. Our target for 2019 is to further improve the quality of our business, to make our processes smoother and above all, provide even better and more personal service to our customers. I also see many opportunities to continue improving our internal operations, for instance by focusing on increased sales. We here at Aktia are cooperating in a purposeful way to earn our customers’ trust also in the future – in that way we have the best possibilities to be the first choice for chosen customer segments as well as a reliable and long-term partner in all stages of life.
October–December 2018:
- The total operating income decreased to EUR 47.7 (52.7) million, of which the net interest income decreased to EUR 20.7 (21.8) million, the net commission income to EUR 22.6 (23.7) million and the net income from life insurance to EUR 5.1 (7.4) million.
- Total operating expenses decreased to EUR 39.4 (42.0) million. Operating expenses excluding items affecting comparability decreased by 8% to EUR 38.3 (41.8) million.
- The comparable operating profit decreased by 10% to EUR 10.2 (11.4) million. The reported operating profit was EUR 8.0 (10.3) million.
January–December 2018:
- The comparable operating profit for 2018 improved by 9% to EUR 65.4 (59.9) million.
Dividend and outlook 2019:
- The Board of Directors propose a dividend of EUR 0.61 (0.57) per share.
- Outlook 2019: Despite the uncertainty of the economic development, the comparable operating profit 2019 is expected to be approximately on the same level as for 2018.
Key figures
| (EUR million) | 4Q2018 | 4Q2017 | ∆ % | 2018 | 2017 | ∆ % | 3Q2018 | 4Q/3Q | 2Q2018 | 1Q2018 | |||
| Net interest income | 20.7 | 21.8 | -5 | % | 85.9 | 89.6 | -4 | % | 21.0 | -2 | % | 23.5 | 20.7 |
| Net commission income | 22.6 | 23.7 | -5 | % | 95.6 | 91.4 | 5 | % | 22.9 | -1 | % | 26.2 | 23.8 |
| Net income from life-insurance | 5.1 | 7.4 | -31 | % | 21.4 | 26.6 | -20 | % | 5.5 | -7 | % | 5.0 | 5.8 |
| Other operating income | -0.7 | -0.3 | -169 | % | 7.3 | 2.6 | 175 | % | 6.0 | - | 1.1 | 0.8 | |
| Total operating income | 47.7 | 52.7 | -9 | % | 210.1 | 210.3 | 0 | % | 55.4 | -14 | % | 55.8 | 51.2 |
| Total operating expenses | -39.4 | -42.0 | -6 | % | -143.0 | -160.7 | -11 | % | -31.8 | 24 | % | -38.3 | -33.5 |
| Impairment of credits and other commitments | -0.1 | -0.4 | -70 | % | -0.8 | -0.6 | 46 | % | -0.8 | 83 | % | 0.7 | -0.6 |
| Operating profit | 8.0 | 10.3 | -22 | % | 67.6 | 49.1 | 38 | % | 23.7 | -66 | % | 18.2 | 17.7 |
| Comparable operating profit1 | 10.2 | 11.4 | -10 | % | 65.4 | 59.9 | 9 | % | 18.6 | -45 | % | 18.5 | 18.0 |
| Cost-to-income ratio | 0.83 | 0.80 | 4 | % | 0.68 | 0.76 | -11 | % | 0.57 | 46 | % | 0.69 | 0.65 |
| Comparable cost-to-income ratio1 | 0.79 | 0.78 | 1 | % | 0.69 | 0.71 | -3 | % | 0.63 | 25 | % | 0.68 | 0.65 |
| Earnings per share (EPS)3, EUR | 0.09 | 0.12 | -25 | % | 0.81 | 0.57 | 42 | % | 0.29 | -69 | % | 0.21 | 0.22 |
| Comparable earnings per share (EPS)3, EUR | 0.12 | 0.13 | -8 | % | 0.77 | 0.70 | 10 | % | 0.23 | -48 | % | 0.22 | 0.22 |
| Equity per share (NAV)2,3, EUR | 8.56 | 8.70 | -2 | % | 8.56 | 8.70 | -2 | % | 8.48 | 1 | % | 8.26 | 8.61 |
| Return on equity (ROE), % | 4.4 | 5.5 | -21 | % | 9.4 | 6.5 | 45 | % | 13.7 | -68 | % | 10.1 | 10.2 |
| Common Equity Tier 1 capital ratio (CET1)2 , % | 17.5 | 18.0 | -3 | % | 17.5 | 18.0 | -3 | % | 16.6 | 5 | % | 16.3 | 16.4 |
| Capital adequacy ratio2, % | 20.5 | 23.4 | -12 | % | 20.5 | 23.4 | -12 | % | 20.1 | 2 | % | 20.1 | 20.8 |
| Dividend per share (proposal from Board Directors), EUR | 0.61 | 0.57 | 7 | % | - | ||||||||
1) Alternative performance measures excluding items affecting comparability
2) At the end of the period
3) Recalculated according to the number of shares after combining series A and R
AKTIA BANK PLC
For more information:
Outi Henriksson, CFO, tel. +358 10 247 6236
Lotta Borgström, Investor Relations, tel. +358 10 247 6838, ir (at) aktia.fi
Distribution:
Nasdaq Helsinki Ltd
Central media
www.aktia.com
Aktia provides a broad range of solutions within banking, asset management and personal insurance. Aktia operates in coastal areas and inland growth areas. Aktia has approximately 380,000 customers who are served at branch offices and online, through mobile interfaces as well as through telephone services. Aktia's share is listed on the list of Nasdaq Helsinki Ltd. For more information about Aktia, see www.aktia.com
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