** Aktia Bank Plc has revised the reporting for 2023 due to a technical error in interest calculation for a limited number of corporate accounts. For more information, see note 11, Correction of previously reported figures in 2023.
Aleksi Lehtonen, CEO:
Aktia’s purpose is to create prosperity. This societal mission is something I want to stress in my first review as CEO of Aktia. By thinking further with and offering innovative and competitive solutions to our customers, we create prosperity for the whole society.
Aktia's quarterly performance was once again strong. Our comparable return on equity (ROE) remained at a good level and amounted to 14.9%. The comparable cost/income ratio was 0.57, which is an improvement from last year and better than our long-term target (below 0.60). In other words, our three business areas continued to deliver stable results and our risks were kept under control.
Although the housing market remained soft, the positive development of the banking business continued, with strong demand for financing solutions such as leasing and hire purchase. In the Asset Management business, even though net subscriptions for the quarter were negative, we were happy to see positive net subscriptions within both Private Banking and institutional customers in June. The result of the life insurance business also remained stable, and sales of risk life insurance policies remained at the same good level as in previous quarters.
We have continued to invest in customer experience, functionality of our banking system, information security and processes required by regulation, which is reflected in higher IT expenses. Overall, however, we have continued to apply a strict cost control. To summarise, we are on the right track to achieve Aktia’s financial targets, which extend to 2025.
Continued focus on development
The development of Aktia’s Asset Management is progressing according to plan and the organisational structure of the business area has been simplified. We have the building blocks needed, especially employees with first-class skills. By focusing on employees, customers and business development, we ensure the long-term competitiveness of Asset Management and Aktia as a whole. We have also recruited a Head of Customers who has the overall responsibility for the customer focus and institutional sales in Asset Management. By taking concrete measures such as these, we are well on track to become the leading wealth manager bank.
In August, our new Chief Information Officer Oskari Kurki will assume his duties and the responsibility for Aktia’s IT operations. We will continue to make considerable efforts and investments in IT operations, as they are a key part of Aktia’s core business and an inseparable part of our processes and the customer experience.
Launches and collaboration
Aktia actively engages with industry leaders in selected areas. At the end of May, we announced that Aktia and Swedbank have entered into a strategic partnership, as a further step in a decades-long relationship of doing business together. The collaboration enables us to make even better use of, among other things, the strategic investments we have made in leasing and factoring platforms.
Among the launches in Asset Management, it is worth mentioning that in June we launched the Aktia Velkarahastot II Ky (Private Debt Fund). The fund’s first investment object is the Oaktree Opportunities XII fund. The fund manager Oaktree is a leading alternative investment fund manager. The fund gives access to a professionally managed portfolio of opportunistic debt investment, which only large institutional investors usually have access to.
Looking to the future
At the beginning of June, I had the pleasure to start as CEO at Aktia. I wish to express my sincere thanks to Juha Hammarén, who previously took care of CEO duties, as well as to the Executive Committee and the whole organisation, who have enabled me to take over responsibilities smoothly. In June, I met many of our truly professional and committed colleagues across the country and joined a large number of customer meetings, demonstrating well-functioning customer relationships. Employee and customer satisfaction go hand in hand, and because of this, I am especially pleased that the results of the employee survey, conducted in the spring, are showing a clearly positive trend.
I look forward to achieving our ambitious targets together with the employees in order to harness the large potential within Aktia. We have started the work related to Aktia’s strategic themes and updating our long-term financial targets. Our mission must be reflected in everything we do: to create prosperity for customers, owners and society as a whole. I am proud that our work has an important, comprehensive purpose.
Key Figures
| (EUR million) | Q2/2024 | Q2/2023 | ∆ % | 1–6/2024 | 1–6/2023 | ∆ % | Q1/2024 | ∆ % | 2023 |
| Net interest income | 38.8 | 32.8 | 18% | 77.9 | 63.7 | 22% | 39.1 | -1% | 140.4 |
| Net commission income | 30.8 | 30.4 | 2% | 61.0 | 60.6 | 1% | 30.1 | 2% | 120.4 |
| Net income from life insurance | 7.4 | 5.7 | 29% | 15.0 | 12.9 | 17% | 7.7 | -4% | 24.1 |
| Total operating income | 76.7 | 69.3 | 11% | 154.0 | 138.7 | 11% | 77.3 | -1% | 287.4 |
| Operating expenses | -44.8 | -42.2 | 6% | -86.2 | -89.3 | -3% | -41.4 | 8% | -176.6 |
| Impairment of credits and other commitments | -1.8 | -1.3 | 38% | -4.5 | -2.3 | 101% | -2.7 | -34% | -7.0 |
| Operating profit | 30.1 | 25.8 | 17% | 63.4 | 47.1 | 35% | 33.3 | -9% | 102.6 |
| Comparable operating income1 | 76.7 | 69.1 | 11% | 154.0 | 138.4 | 11% | 77.3 | -1% | 287.2 |
| Comparable operating expenses1 | -44.1 | -42.2 | 5% | -84.8 | -87.9 | -4% | -40.7 | 8% | -174.2 |
| Comparable operating profit1 | 30.8 | 25.6 | 21% | 64.7 | 48.2 | 34% | 33.9 | -9% | 104.8 |
| Cost-to-income ratio | 0.58 | 0.61 | -4% | 0.56 | 0.64 | -13% | 0.54 | 9% | 0.61 |
| Comparable cost-to-income ratio1 | 0.57 | 0.61 | -6% | 0.55 | 0.64 | -13% | 0.53 | 9% | 0.61 |
| Earnings per share (EPS), EUR | 0.33 | 0.28 | 18% | 0.71 | 0.52 | 36% | 0.38 | -12% | 1.12 |
| Comparable earnings per share (EPS), EUR, euro1 | 0.34 | 0.28 | 22% | 0.72 | 0.53 | 35% | 0.38 | -11% | 1.15 |
| Return on equity (ROE), % | 14.5 | 13.6 | 0.9* | 15.8 | 12.8 | 3.0* | 16.5 | -2.0* | 13.3 |
| Comparable return on equity (ROE), %1 | 14.9 | 13.4 | 1.4* | 16.1 | 13.1 | 3.0* | 16.8 | -1.9* | 13.6 |
| Common Equity Tier 1 capital ratio (CET1), %2 | 11.5 | 11.0 | 0.5* | 11.5 | 11.0 | 0.5* | 11.4 | 0.1* | 11.3 |
* The change is calculated in percentage points
1) Alternative performance measures
2) At the end of the period
Briefing for analysts, investors and media
Aktia's results briefing for analysts, investors and media will be held in English on Friday, 2 August 2024 at 10.30 a.m. Aktia's CEO Aleksi Lehtonen and CFO Outi Henriksson will present the results.
The briefing can be viewed live as a webcast or as a recording after the event at https://aktia.videosync.fi/aktia-oyj-q2-report-2024. Questions can be submitted in writing during the live webcast.
AKTIA BANK PLC
For more information:
Oscar Taimitarha, Director, Investor Relations, tel. +358 40 562 2315
Distribution:
Nasdaq Helsinki Ltd
Mass media
www.aktia.com
Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 850 people around Finland. Aktia's assets under management (AuM) on 30 June 2024 amounted to EUR 14.1 billion, and the balance sheet total was EUR 12.4 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.
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