Helsinki, 2017-11-08 07:00 CET (GLOBE NEWSWIRE) --
Aktia Bank plc
Interim report January-September 2017
8.11.2017 kl. 8.00
CEO Martin Backman
”Continued strong sales of mutual funds and asset management contributed to a 10 % higher net commission income in the third quarter than last year, amounting to EUR 22.0 (20.0) million. The net interest income of EUR 16.9 (15.8) million from borrowing and lending was affected favourably by high demand. Returns from the bank’s liquidity portfolio and interest rate hedges fell to EUR 7.0 (9.8) million, resulting in a decrease of total net interest income to EUR 21.5 (23.9) million. Excluding items affecting comparability amounting to EUR 7.7 (1.0) million, the operating profit for the third quarter was EUR 15.7 (16.8) million.”
July - September 2017:
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Total operating income amounted to EUR 50.3 (50.9) million, with a continued increase of net commission income to EUR 22.0 (20.0) million.
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Net interest income from borrowing and lending amounted to EUR 16.9 (15.8) million. Both derivatives and fixed-rate instruments are used to manage interest rate risk and the liquidity portfolio. Net interest income was burdened by EUR 2.4 million lower returns from the liquidity portfolio in July–September and a decrease of EUR 0.4 million in interest rate hedges.
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Total operating expenses rose by 20 % to EUR 41.7 (34.6) million. The increase in expenses i mainly attributable to personnel-related costs for restructuring of EUR 6.0 million as well as to an increase of 1.3 million in cost for restructuring related to other expenses. Operating expenses excluding items affecting comparability was EUR 34.4 (34.6) million.
- Outlook for 2017 (specified): The operating profit for 2017 is estimated to be EUR 9–12 million (previously: EUR 10–15 million) million lower than in 2016, as the restructuring will burden the operating profit for 2017 and no larger one-time gains are expected. The comparable operating profit is expected to be approximately on the same level (previously: on the same level) as the comparable operating profit in 2016.
Key figures
| (EUR million) | 3Q2017 | 3Q2016 | ∆ % | Jan-Sep 2017 | Jan-Sep 2016 | ∆ % | 2Q2017 | 3Q/2Q | 1Q2017 | 2016 |
| Net interest income | 21.5 | 23.9 | -10 % | 67.8 | 72.6 | -7 % | 22.9 | -6 % | 23.4 | 95.6 |
| Net commission income | 22.0 | 20.0 | 10 % | 67.7 | 59.6 | 14 % | 24.6 | -11 % | 21.1 | 79.7 |
| Total operating income | 50.3 | 50.9 | -1 % | 157.6 | 160.7 | -2 % | 54.2 | -7 % | 53.1 | 211.3 |
| Total operating expenses | -41.7 | -34.6 | 20 % | -118.7 | -108.0 | 10 % | -39.7 | 5 % | -37.3 | -148.4 |
|
Write-downs on credits and other commitments |
0.0 | -0.5 | -95 % | -0.1 | -0.7 | -80 % | -0.1 | -57 % | -0.1 | -2.2 |
| Operating profit | 8.0 | 15.8 | -49 % | 38.9 | 52.9 | -26 % | 14.4 | -44 % | 16.4 | 61.5 |
| Comparable operating profit1 | 15.7 | 16.8 | -7 % | 48.5 | 49.0 | -1 % | 16.9 | -7 % | 15.9 | 57.5 |
| Cost-to-income ratio | 0.83 | 0.68 | 22 % | 0.75 | 0.67 | 12 % | 0.73 | 14 % | 0.70 | 0.70 |
| Earnings per share (EPS), EUR | 0.10 | 0.19 | -50 % | 0.47 | 0.64 | -27 % | 0.17 | -42 % | 0.20 | 0.74 |
| Equity per share (NAV)2, EUR | 8.92 | 9.35 | -5 % | 8.92 | 9.35 | -5 % | 8.84 | 1 % | 9.34 | 9.24 |
| Return on equity (ROE), % | 4.4 | 8.4 | -47 % | 6.9 | 9.2 | -25 % | 7.4 | -41 % | 8.7 | 8.0 |
| Common Equity Tier 1 capital ratio2, % | 17,3 | 19.2 | -10 % | 17,3 | 19.2 | -10 % | 18.0 | -4 % | 18.2 | 19.5 |
| Capital adequacy ratio2, % | 22,9 | 25.5 | -10 % | 22,9 | 25.5 | -10 % | 24.3 | -6 % | 24.8 | 26.3 |
1 Alternative performance measures excluding items affecting comparability, see page 20
2 At the end of the period
AKTIA BANK PLC
The Board of Directors
President & CEO Martin Backman, tel. +358 10 247 6250
CFO Outi Henriksson, tel. +358 10 247 6250
Head of IR Anna Gabrán, tel. +358 10 247 6501, ir(at) aktia.fi
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
