Aktia Bank PLC Class A · OMXHEX:AKTIA
Aktia Bank PLC Class A — Q1 2021 Earnings Presentation
27 slides from Aktia Bank PLC Class A's earnings presentation, May 5, 2021
Slide 1: Q1 Results
5 MAY 2021 Q1 Results Mikko Ayub CEO
Slide 2: Aktia's Q1 2021 in brief
Aktia’s Q1 2021 in brief • The good development of the net interest income continued mainly due to the strong balance growth of corporate credits • The housing market continued to be active and the demand on especially holiday homes increased • Assets under management were at the same level as at th
Slide 3: Aktia won all three categories in Morningstar awards
Aktia won all three categories in Morningstar awards Asset Management Assets under management excluding custody (AuM) Asset Management EUR million • Aktia’s extensive and top-quality asset management competence was rewarded with Morningstar’s all three 12,000 10,447 fund house awards 9,853 10,379 10
Slide 4: Aktia's Morningstar rating extraordinary strong
Aktia’s Morningstar rating extraordinary strong 3/2021 4.50 4.30 4.10 3.90 3.70 3.50 3.30 3.10 2.90 2.70 2.50 1/2018 4/2018 7/2018 10/2018 1/2019 4/2019 7/2019 10/2019 1/2020 4/2020 7/2020 10/2020 1/2021 Aktia Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7
Slide 5: Growth in total loan book continues
Growth in total loan book continues Total loan book EUR +139 million (+2%) Q-o-Q • Group lending to the public EUR million EUR million and public-sector entities 7,139 increased by EUR 139 million 700 7,100 to EUR 7,139 (7,000) million 7,000 600 7,000 500 6,900 • Aktia’s total new lending was 400 6,
Slide 6: Implementation of the service model continues
Implementation of the service model continues Banking Business Private customers • The good development in housing loan operations continued during Q1 and the number of digital housing transactions increased further. • Aktia’s customer-oriented service model has become a part of the company’s everyd
Slide 7: Our strategic priorities
Our strategic priorities 2023 Win in asset management Acquire new customers in growing cities Drive operational efficiency to capitalise on our challenger position Banking & Insurance Aktia Q1 2021 Results Presentation 5 May 2021 7
Slide 8: The financial targets 2023
The financial targets 2023 Comparable Return on Comparable Common Equity operating profit Equity (ROE) cost-to-income Tier 1 capital ratio EUR 100 million above 11% ratio under 0.60 (CET1) 1.5–3 percentage points over the regulatory requirement 1–3/2021; 31 March 2021; 1–3/2021; 31 March 2021; EUR 1
Slide 9: Aktia acquired the wealth management operations of Taaleri – key figures
Aktia acquired the wealth management operations of Taaleri – key figures • The transaction was completed on 30 April 2021 € 4.4/7.1 bn appr. 100 ~5,600 • The acquired Taaleri wealth management AUM # of employees # of customers business is profitable and expected to have positive contribution to oper
Slide 10: Transaction synergies
Transaction synergies Revenue synergies Cost synergies ▪ Offering expansion for the ▪ Reduced cost base due to transferring customers - increased scale of the banking services, Aktia’s business investment and insurance products ▪ Consolidation of IT and infrastructure ▪ Offering expansion for Aktia’
Slide 11: Financial overview
Aktia Q1 2021 Results presentation Financial overview Outi Henriksson CFO Aktia Q1 2021 Results Presentation 5 May 2021 11
Slide 12: Comparable operating profit and income
Comparable operating profit and income Q-o-Q Comparable operating profit Comparable operating income EUR million EUR million 60 57.0 57.9 19.8 54.8 1.6 20 0.6 0.3 1.6 49.4 16.9 50 10.2 9.9 16.5 39.9 10.1 0.5 16.0 4.7 0.6 0.3 15 2.7 40 11.6 Other 6.2 Centralised 25.2 25.4 25.0 functions and 22.9 24.2
Slide 13: Comparable operating profit
Comparable operating profit *Growth in net interest income (EUR 1.6 million), net 1–3/2021 vs 1–3/2020 +6% underlying profit growth commission income (EUR -0.1 million), net income from life (without unrealised value changes)* insurance (EUR 1.2 million), other income (EUR 0.6 million) and operating
Slide 14: Assets under Management – Net subscriptions and market changes
Assets under Management – Net subscriptions and market changes Asset Management, Aktia UI Q-o-Q Asset Management, domestic Q-o-Q EUR million EUR million AUM Market Net AUM Market Net AUM AUM Market Net AUM Market Net AUM 3/2020 changes subscriptions 9/2020 changes subscriptions 3/2021 3/2020 changes
Slide 15: Assets under Management – Net subscriptions and market changes
Assets under Management – Net subscriptions and market changes Banking Business, Retail Q-o-Q EUR million AUM Market Net AUM Market Net AUM 3/2020 changes subscriptions 9/2020 changes subscriptions 3/2021 Net AUM Market Net AUM Market subscriptions 6/2020 changes subscriptions 12/2020 changes Aktia
Slide 16: Comparable operating expenses
Comparable operating expenses 1–3/2021 vs 1–3/2020 EUR million Staff costs: Staff expenses increased by 6% to EUR 17.6 (16.6) million, which relate to recruitments in 2020. IT expenses: IT expenses increased to EUR 6.4 (5.6) million, partially related to timing of recognising certain IT costs. The r
Slide 17: Impairments for future expected credit losses
Impairments for future expected credit losses Change in expected credit losses (ECL) 1–3/2021 EUR million Impairment of credits and other • Impairments on credits and other commitments 1–3/2021 EUR –2.2 million commitments increased to EUR -2.2 (-1.4) million, of which the change in the allowance fo
Slide 18: Financial summary Q1
Financial summary Q1 EUR million 1Q2021 1Q2020 % 4Q2020 % Total operating income 57.9 39.9 45% 57.0 2% Net interest income 21.3 19.7 8% 20.8 2% Net commission income 25.0 25.2 0% 25.4 -1% Net income from life insurance 9.9 -5.2 - 10.2 -3% Other income 1.6 0.3 503% 0.6 181% Total operating expenses
Slide 19: Structure of lending and deposits
Structure of lending and deposits 31 March 2021 (31 December 2020) Lending Deposits Total EUR 7,139 (7,000) million Total EUR 4,371 (4,466) million 1% (0%) 7% (7%) EUR 29 EUR 301 1% (2%) 13% (13%) (30) million (314) million EUR 60 EUR 941 (66) million (908) million 20% (21%) EUR 850 14% (14%) (946)
Slide 20: Balance sheet total increased to EUR 10,647 million
Balance sheet total increased to EUR 10,647 million 31 March 2021 Total assets Total liabilities and equity EUR million EUR million 10,573 10,674 10,573 10,674 Deposits from the public 10,000 10,000 Lending to the public 4,466 4,371 Liabilities to central 8,000 and public-sector 8,000 banks and cred
Slide 21: CET1 on a solid level above the target range
CET1 on a solid level above the target range Capital Adequacy • At the end of the period, the Bank Group’s Common Equity Tier CET1 1 (CET1) capital ratio was 13.8%. EUR million % • Target range at the end of period 11.3–12.8%. 800 24 • During the Q1 Aktia implemented the new definition of default (D
Slide 22: High funding activities
High funding activities • During the Q1 2021 Aktia has continued to be active issuer in the senior preferred market. Aktia has completed over 30 transactions under the EMTN program. The total volume during the first quarter was EUR 170 million with maturities in the range of 2–15 years. • Aktia is c
Slide 23: Appendices
Aktia Q1 2021 Results presentation Appendices Aktia Q1 2021 Results Presentation 5 May 2021 23
Slide 24: Key figures Q1 2021
Key figures Q1 2021 (Q1 2020) Net interest income +8% EUR 21.3 (19.7) million Net commission income 0% EUR 25.0 (25.2) million Total operating income +45% EUR 57.9 (39.9) million Comparable operating income +45% EUR 57.9 (39.9) million Total operating expenses +9% EUR -38.7 (-35.6) million Comparabl
Slide 25: Net interest income mix
Net interest income mix EUR million 30 23.4 22.9 25 21.5 21.8 23.5 3.9 3.6 20.7 0.7 21.0 20.7 20.8 21.3 3.5 3.4 19.6 19.3 19.7 20.1 20.0 0.6 0.5 3.3 3.3 2.8 2.0 19.4 19.2 0.6 0.6 1.5 1.4 20 1.3 1.2 0.8 0.7 0.5 1.7 1.6 4.6 3.8 1.7 1.6 1.5 1.4 1.4 3.4 3.1 2.4 2.2 2.0 1.6 15 10 19.4 19.5 20.6 20.7 17.9
Slide 26: Net commission income mix
Net commission income mix EUR million ◼ Other ◼ Insurance 30 ◼ Lending ◼ Card, payment services and borrowing 25.2 25.4 25.0 ◼ Mutual funds, asset management 25 24.2 1.5 1.3 22.9 1.3 and securities brokerage 0.6 1.3 0.3 0.3 2.1 1.3 0.4 2.4 2.2 0.1 2.3 20 2.3 6.0 5.4 5.4 5.5 5.6 15 10 15.2 14.7 15.8
Slide 27: The good bank. And a great asset manager.
The good bank. And a great asset manager. Investor Relations contacts: Lotta Borgström Director, Investor Relations and Communications +358 10 247 6838 [email protected]