Aktia Bank PLC Class A · OMXHEX:AKTIA
Aktia Bank PLC Class A — Debt Investor Presentation (2018)
28 slides from Aktia Bank PLC Class A's debt investor presentation, 2018
Slide 1: Debt Investor Presentation
Debt Investor Presentation Timo Ruotsalainen, Head of Treasury Interim Report 2Q 2018 1
Slide 2: Aktia Bank Plc Executive Summary
Aktia Bank Plc Executive Summary Retail bank with focus on growth areas in Finland Provides banking services to private customers, small and middle sized companies and institutional investors. Business supported by own branch network and digital services Households accounts for 79 % of the loan port
Slide 3: Aktia overview and recent result
Aktia overview and recent result • Implementation of new strategy. • New core banking system enables improved digital operations and customer service. • Good financial performance in January – March 2018. 3
Slide 4: Background and strategy
Background and strategy Aktia is the oldest deposit bank in Finland. 1826 Helsinki Savings Bank started its business operations. 1991 Today’s Aktia was born when Helsinki Savings Bank merged with seven other savings banks. More mergers followed until the new millennium. 2009 Aktia's shares were list
Slide 5: Aktia in numbers
Aktia in numbers Aktia is a local Finnish bank serving private customers, small and middle sized corporates and institutional investors. Aktia's share (AKTIA) is listed on the list of Nasdaq Helsinki Ltd. Aktia Bank, 2017: Operating income: EUR 210.3 million C/I: 0,7 CET1: 18.0% 350,000 Operating pr
Slide 6: Higher net commission income and lower costs contributed to improved profitability
January–June 2018: Higher net commission income and lower costs contributed to improved profitability 6
Slide 7: Transformation proceeding well
January-June 2018: Transformation proceeding well New services and better economic governance and reporting with the new core banking system. Increased net commission income and cost savings are leading to results. New products, customer concepts and digitalisation initiatives are introduced. New CE
Slide 8: Core banking system in place and in use
Core banking system in place and in use Digital banking • The new core banking system introduced in summer 2017 Data and analytics • The core banking system enables combined automated processes and robotics in our service solution eg. automated loan decisions. • Versatile Mobile Bank allows eg. fund
Slide 9: Aktia's customer groups according to new strategy
Aktia’s customer groups according to new strategy 70 % of Finnish citizens would prefer Financial Advisory 40% of Aktia’s customers have a personal PRODUCT PREFERENCE PREMIUM PRIVATE BANK OWNER MANAGED financial advisor – the INSTITUTIONS CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS ENTERPRISES highest p
Slide 10: Growing Asset Management
Award winning wealth management: Growing Asset Management EUR billion ASSETS UNDER MANAGEMENT 8 970 9 000 INSTITUTIONAL CLIENTS AUM 8 500 • EMD funds: The institutional 8 000 7 962 customer base becoming 5.2 7 500 increasingly international. EUR billion 7 000 • Equity funds: New products and 6 523 b
Slide 11: Aktia – the debt investment case
Aktia – the debt investment case Moody’s Standard & Poor’s Senior loan: A1 / P-1, stable outlook Senior loan: A- / A-2, stable outlook Covered bonds: Aaa Complete rating reports on www.aktia.com/en/velkasijoittajat/luottoluokitus 11
Slide 12: CET1 on a good level
Capital adequacy: CET1 on a good level • Aktia’s Common Equity Tier 1 (CET1) Capital is at a good Change in CET1% level at 16.3 % (18.0 % on 31 December 2017) CET1 % 18.0% 31 December 2017 • Aktia’s Common Equity Tier 1 Capital decreased due to: Introduction of the risk -1.3 percentage • The introdu
Slide 13: Finnish households a key business driver
Structure of lending and deposits: Finnish households a key business driver Public entities and non-profit Public entities and non-profit Housing organisations organisations associations 1% 3% 9% SMEs SMEs 11% 25 % Lending Deposits EUR 5,958 million EUR 4,115 million (2017: 5,839) (2017: 4,119) Hous
Slide 14: Prudent and low-risk lending policy
Stable long-term trend in non-performing loans: Prudent and low-risk lending policy Aktia Bank operates under strict Non-performing loans more than 90 days overdue origination criteria: • Identification of the customer 0,83 mandatory 0,79 0,78 0,80 0,790,780,800,79 0,73 0,75 0,74 • Responsible lendi
Slide 15: High-quality liquidity portfolio
High-quality liquidity portfolio At the end of March 2018 the Bank Group’s liquidity buffer was approximately equivalent to the estimated outgoing cash flow of finance from the wholesale market for 27 months. The Liquidity Coverage ratio (LCR) was 143%. 31.3.2018 31.3.2017 6% EUR million 1,816 1,816
Slide 16: Sound funding profile
Sound funding profile Customers deposits and covered bonds dominate Debt maturity profile Money EUR million Subordinated debt Market 3% 0% 800 REPOs & ECB 8% 600 Senior debt MEUR 769 11 % Customer 400 deposits EUR 7,212 MEUR 3,933 million 55% 200 Covered bonds MEUR 1,648 23% 0 2018 2019 2020 2021 20
Slide 17: Aktia Bank as covered bond issuer
Aktia Bank as covered bond issuer • The Aktia Bank mortgage loan portfolio is of very high quality: ✓ Only prime residential mortgage loans ✓ Collateral located in Finland ✓ Low average LTV Aktia Bank operates under the • Aktia Bank covered bonds are CRR & UCITS, ECB repo and legislation as mortgage
Slide 18: Cover pools
Cover pools May 2018 Cover Pool 2 (Active pool) Cover Pool 1 Total asset pool EUR 2,379 million EUR 216 million No substitute assets No. of loans / average loan balance 39,365 / EUR 60,424 2,751/ EUR 78,630 First ranking residential mortgages and First ranking residential mortgages and pledges of Ty
Slide 19: The Finnish Economy
The Finnish Economy Strong Economy (with the happiest people of the world) 19
Slide 20: The Finnish Economy: Export driven growth
The Finnish Economy Export driven growth Key facts about Finland • Member of EU and Euro area • Population: 5.5 million • Area: 338 430 sq. km • GDP per capita EUR 38 959 (2016) • Credit ratings: Aa1 (stable) / AA+ (stable) / AA+ (stable) 21
Slide 21: The Finnish Economy: Growth continues
The Finnish Economy Growth continues 22
Slide 22: The Finnish Economy
The Finnish Economy Employment rate, 15-64 year olds Private debt, % of GDP 80 225 79 78 > A ” 76 8 4 B n n 70 cy 68 or 66 65 23 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2018 201 2015 z016 2017 2018 2019 ‘Sources: Aktia and Macrabond Sweden Denmark Finiand Frans | Germany ‘Sources
Slide 23: Macroeconomic environment
Macroeconomic environment All is well, for now. World exports Developing economies World Developed economies Sources: Aktia and Macrobond 24
Slide 24: Finnish housing market
Finnish housing market Solid and stable market 25
Slide 25: Courageously. Skilfully. Together.
Courageously. Skilfully. Together. 25
Slide 26: Contacts and additional information
26 Contacts and additional information Timo Ruotsalainen Outi Henriksson Head of Treasury CFO Tel. +358 10 247 7211 Tel. +358 10 247 6236 [email protected] [email protected] Debt investor information: http://www.aktia.com/en/velkasijoittajat (website) http://www.aktia.com/en/julkaisu
Slide 27: Appendix
APPENDIX 27
Slide 28: Happiest People of the world
”Happiest People of the world” Finland Wins Double Gold in World Happiness Report 2018 · 14 Mar 2018 ROME, March 14 – This year Finland takes the top spot as the happiest country as measured by surveys undertaken by Gallup from 2015-2017. Rounding out the rest of the top ten in order of overall happ