Aktia Pankki Oyj
Aktia Bank plc: Aktia Bank plc’s financial position and profit for the period January – 30 September 2012
Aktia Pankki Oyj 08.11.2012 06:59 Dissemination of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Stock exchange release 8 November 2012 at 8 a.m. Helsinki, Finland, 2012-11-08 06:59 CET (GLOBE NEWSWIRE) -- Aktia Bank plc's financial position and profit for the period January - 30 September 2012 Aktia Bank plc publishes information on the bank's financial performance and financial position as the parent company of the bank, Aktia plc, publishes its Interim Report for the period 1 January - 30 September 2012. The information published is not an Interim Report as stipulated in the Securities Markets Act. In 2013, a merger of the holding company Aktia plc with Aktia Bank plc is planned, as well as listing of the new parent company Aktia Bank plc on the stock exchange. All information concerns Aktia Bank Group unless specified otherwise. Key figur es -------------------------------------------------------------------------------- (EUR 7-9/201 7-9/201 ∆ % 1-9/201 1-9/201 ∆ % 4-6/201 1-3/201 2011 milli 2 1 2 1 2 2 on) -------------------------------------------------------------------------------- Earnin 2.3 1.8 24% 8.4 7.5 13% 3.2 2.9 8.2 gs per share (EPS) -------------------------------------------------------------------------------- Equity 139.9 106.7 31% 139.9 106.7 31% 127.5 130.9 106.4 per share (NAV) 1) -------------------------------------------------------------------------------- Return 6.1 5.7 6% 8.0 8.2 -2% 8.8 8.8 6.8 on equit y (ROE) , % -------------------------------------------------------------------------------- Total 12.4 3.7 239% 30.2 2.6 - 3.3 14.5 2.0 earni ngs per share -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Number 3 3 0% 3 3 0% 3 3 3 of share s at the end of the perio d 1) -------------------------------------------------------------------------------- Person 753 774 -3% 753 774 -3% 764 771 774 nel (FTEs ), avera ge numbe r of emplo yees from the begin ning of the finan cial year 1) -------------------------------------------------------------------------------- Bankin g Busin ess (incl . Priva te Banki ng) -------------------------------------------------------------------------------- Cost-t 0.69 0.79 -13% 0.69 0.72 -4% 0.69 0.68 0.73 o-inco me ratio -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Borrow 3,666.1 3,600.3 2% 3,666.1 3,600.3 2% 3,732.5 3,700.8 3,662.2 ing from the publi c 1) -------------------------------------------------------------------------------- Lendin 7,301.0 6,990.5 4% 7,301.0 6,990.5 4% 7,269.5 7,239.5 7,117.1 g to the publi c 1) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Capita 19.9 16.6 20% 19.9 16.6 20% 18.9 18.1 16.2 l adequ acy ratio , % 1) -------------------------------------------------------------------------------- Tier 1 11.8 10.8 9% 11.8 10.8 9% 11.7 11.3 10.6 capit al ratio , % 1) -------------------------------------------------------------------------------- Risk-w 3,727.9 3,643.1 2% 3,727.9 3,643.1 2% 3,742.0 3,767.3 3,694.0 eighte d commi tments 1) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Asset Manag ement -------------------------------------------------------------------------------- Mutual 4,246.7 3,379.2 26% 4,246.7 3,379.2 26% 4,107.4 4,140.0 3,613.4 fund volum e 1) -------------------------------------------------------------------------------- Manage 7,413.3 6,204.6 19% 7,413.3 6,204.6 19% 7,233.9 7,174.6 6,624.1 d and broke red asset s 1) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1)) At the end of the perio d -------------------------------------------------------------------------------- Formulas for key figures are presented in Aktia Bank plc's Annual Report 2011 on page 6. Consolidated income statement for Bank Group -------------------------------------------------------------------------------- (EUR million) 1-9/2012 1-9/2011 ∆ % 2011 -------------------------------------------------------------------------------- Net interest income 87.4 98.0 -11% 128.2 -------------------------------------------------------------------------------- Dividends 0.1 0.1 -40% 0.2 -------------------------------------------------------------------------------- Commission income 57.3 54.0 6% 71.4 -------------------------------------------------------------------------------- Commission expenses -12.5 -13.4 7% -17.5 -------------------------------------------------------------------------------- Net commission income 44.9 40.6 10% 54.0 -------------------------------------------------------------------------------- Net income from financial -0.2 -8.7 98% -9.3 transactions -------------------------------------------------------------------------------- Net income from investment -0.1 0.0 -106% -0.1 properties -------------------------------------------------------------------------------- Other operating income 3.6 3.3 10% 4.6 -------------------------------------------------------------------------------- Total operating income 135.7 133.3 2% 177.6 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Staff costs -38.6 -38.6 0% -52.9 -------------------------------------------------------------------------------- IT-expenses -15.1 -14.8 3% -19.9 -------------------------------------------------------------------------------- Depreciation of tangible and -2.4 -3.0 -22% -4.0 intangible assets -------------------------------------------------------------------------------- Other operating expenses -37.5 -38.9 -4% -53.0 -------------------------------------------------------------------------------- Total operating expenses -93.6 -95.3 -2% -129.7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Write-down on other financial -1.8 - - - assets -------------------------------------------------------------------------------- Write-down on credits and other -4.6 -6.3 -27% -10.5 commitments -------------------------------------------------------------------------------- Share of profit from associated -0.5 0.0 - 0.0 companies -------------------------------------------------------------------------------- Operating profit 35.2 31.6 11% 37.4 -------------------------------------------------------------------------------- Income and expenses from other - - - -3.9 activities -------------------------------------------------------------------------------- Taxes -9.2 -8.3 11% -7.8 -------------------------------------------------------------------------------- Profit for the period 26.0 23.3 11% 25.7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attributable to: -------------------------------------------------------------------------------- Shareholders in Aktia Bank plc 25.3 22.4 13% 24.7 -------------------------------------------------------------------------------- Non-controlling interest 0.6 0.9 -29% 1.0 -------------------------------------------------------------------------------- Total 26.0 23.3 11% 25.7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Earnings per share (EPS), EUR 8,442,627.57 7,470,051.90 13% 8,239,314.30 -------------------------------------------------------------------------------- There is no dilution effect to earnings per share -------------------------------------------------------------------------------- Consolidated statement of comprehensive income for Bank Group -------------------------------------------------------------------------------- (EUR million) 1-9/2012 1-9/2011 ∆ % 2011 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit for the period 26.0 23.3 11% 25.7 -------------------------------------------------------------------------------- Other comprehensive income after taxes: -------------------------------------------------------------------------------- Change in valuation of fair 72.3 -14.8 - -19.2 value for financial assets available for sale -------------------------------------------------------------------------------- Change in valuation of fair -6.5 0.1 - -0.2 value for cash flow hedging -------------------------------------------------------------------------------- Transferred to the income - - - 0.4 statement for financial assets available for sale -------------------------------------------------------------------------------- Comprehensive income from items 65.9 -14.7 - -19.0 which can be transferred to the income statement -------------------------------------------------------------------------------- Defined benefit plan pensions - - - -0.3 -------------------------------------------------------------------------------- Comprehensive income from items - - - -0.3 which can not be transferred to the income statement -------------------------------------------------------------------------------- Total comprehensive income for 91.8 8.6 967% 6.4 the period -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total comprehensive income attributable to: -------------------------------------------------------------------------------- Shareholders in Aktia Bank plc 90.6 7.7 - 6.0 -------------------------------------------------------------------------------- Non-controlling interest 1.2 0.9 32% 0.4 -------------------------------------------------------------------------------- Total 91.8 8.6 967% 6.4 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total earnings per share, EUR 30,203,043.59 2,560,447.72 - 2,002,733.92 -------------------------------------------------------------------------------- Consolidated balance sheet for Bank Group -------------------------------------------------------------------------------- (EUR million) 30.9.2012 31.12.2011 ∆ % 30.9.2011 -------------------------------------------------------------------------------- Assets -------------------------------------------------------------------------------- Cash and balances with central banks 236.1 466.3 -49% 298.3 -------------------------------------------------------------------------------- Interest-bearing securities 2,025.2 1,874.4 8% 1,904.7 -------------------------------------------------------------------------------- Shares and participations 8.0 1.8 344% 2.0 -------------------------------------------------------------------------------- Financial assets available for sale 2,033.2 1,876.2 8% 1,906.6 -------------------------------------------------------------------------------- Financial assets held until maturity 10.1 20.0 -50% 20.0 -------------------------------------------------------------------------------- Derivative instruments 395.7 300.7 32% 264.2 -------------------------------------------------------------------------------- Lending to Bank of Finland and credit 167.8 88.8 89% 59.8 institutions -------------------------------------------------------------------------------- Lending to the public and public sector 7,301.0 7,117.1 3% 6,990.5 entities -------------------------------------------------------------------------------- Loans and other receivables 7,468.8 7,205.8 4% 7,050.3 -------------------------------------------------------------------------------- Investments in associated companies 0.8 3.5 -76% 3.5 -------------------------------------------------------------------------------- Intangible assets 2.3 2.3 2% 2.3 -------------------------------------------------------------------------------- Investment properties 0.7 0.7 0% 0.0 -------------------------------------------------------------------------------- Other tangible assets 4.5 5.3 -15% 5.8 -------------------------------------------------------------------------------- Accured income and advance payments 71.6 70.6 1% 68.8 -------------------------------------------------------------------------------- Other assets 6.9 7.6 -9% 8.2 -------------------------------------------------------------------------------- Total other assets 78.5 78.2 0% 77.0 -------------------------------------------------------------------------------- Income tax receivables 3.8 22.3 -83% 16.5 -------------------------------------------------------------------------------- Deferred tax receivables 0.3 11.9 -97% 11.1 -------------------------------------------------------------------------------- Tax receivables 4.1 34.2 -88% 27.6 -------------------------------------------------------------------------------- Total assets 10,234.8 9,993.1 2% 9,655.7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Liabilities -------------------------------------------------------------------------------- Liabilities to credit institutions 1,097.3 1,112.1 -1% 945.2 -------------------------------------------------------------------------------- Liabilities to the public and public 3,666.1 3,662.2 0% 3,600.3 sector entities -------------------------------------------------------------------------------- Deposits 4,763.4 4,774.3 0% 4,545.5 -------------------------------------------------------------------------------- Derivative instruments 196.6 160.6 22% 153.1 -------------------------------------------------------------------------------- Debt securities issued 3,743.7 3,811.5 -2% 3,707.4 -------------------------------------------------------------------------------- Subordinated liabilities 295.4 288.7 2% 288.5 -------------------------------------------------------------------------------- Other liabilities to credit institutions 395.1 353.5 12% 395.7 -------------------------------------------------------------------------------- Other liabilities to the public and 162.8 51.7 215% 31.6 public sector entities -------------------------------------------------------------------------------- Other financial liabilitites 4,596.9 4,505.4 2% 4,423.2 -------------------------------------------------------------------------------- Accured expenses and income received in 96.4 102.6 -6% 95.7 advance -------------------------------------------------------------------------------- Other liabilities 53.9 44.4 21% 28.5 -------------------------------------------------------------------------------- Total other liabilities 150.3 147.0 2% 124.2 -------------------------------------------------------------------------------- Income tax liabilities 0.9 0.0 - 0.6 -------------------------------------------------------------------------------- Deferred tax liabilities 42.2 28.9 46% 30.6 -------------------------------------------------------------------------------- Tax liabilities 43.0 29.0 49% 31.2 -------------------------------------------------------------------------------- Total liabilities 9,750.3 9,616.3 1% 9,277.2 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Equity -------------------------------------------------------------------------------- Restricted equity 218.9 153.6 42% 157.4 -------------------------------------------------------------------------------- Unrestricted equity 200.8 165.5 21% 162.9 -------------------------------------------------------------------------------- Shareholders' share of equity 419.7 319.1 32% 320.2 -------------------------------------------------------------------------------- Non-controlling interest's share of 64.8 57.7 12% 58.2 equity -------------------------------------------------------------------------------- Equity 484.5 376.8 29% 378.5 -------------------------------------------------------------------------------- Total liabilities and equity 10,234.8 9,993.1 2% 9,655.7 -------------------------------------------------------------------------------- Consolidated statement of changes in equity Fund Shareh Non-co for olders ntroll ' ing Other Fund share- Unrest Retain share intere Total restri at based ricted ed of st's cted share (EUR Share equity fair paymen equity earnin equity of equity million capita value ts reserv gs equity ) l e Equity 93,9 10,3 22,5 0,8 72,7 253,0 453,0 44,3 497,3 as at 1Januar y 2011 Divestme 0,2 0,2 0,2 nt of own shares Dividens -19,9 -19,9 -19,9 to shareho lders Profit 27,7 27,7 0,9 28,6 for the period Financia -1,2 -1,2 0,1 -1,1 l assets availab le for sale Cash 0,2 0,2 0,0 0,1 flow hedging Total -1,0 27,7 26,7 0,9 27,6 comprehensive income for the period Other -0,7 -0,7 13,0 12,4 change in equity Equity 93,9 10,3 21,5 0,1 72,7 260,8 459,2 58,2 517,5 as at 30 Septemb er 2011 -------------------------------------------------------------------------------- Equity 93,9 10,3 19,1 0,2 72,7 269,9 466,0 57,7 523,8 as at 1Januar y 2012 Divestme 0,0 0,0 0,0 nt of own shares Dividens -20,0 -20,0 -20,0 to shareho lders Profit 43,1 43,1 0,6 43,7 for the period Financia 95,9 95,9 0,2 96,1 l assets availab le for sale Cash -6,9 -6,9 0,4 -6,5 flow hedging Total 89,0 43,1 132,1 1,2 133,3 comprehensive income for the period Other 0,7 0,7 5,9 6,6 change in equity Equity 93,9 10,3 108,1 0,9 72,7 293,1 578,9 64,8 643,7 as at 30 Septemb er 2012 -------------------------------------------------------------------------------- Consolidated cash flow statement for Bank Group -------------------------------------------------------------------------------- (EUR million) 1-9/20 1-9/20 ∆ % 2011 12 11 -------------------------------------------------------------------------------- Cash flow from operating activities -------------------------------------------------------------------------------- Operating profit 35.2 31.6 11% 37.4 -------------------------------------------------------------------------------- Adjustment items not included in cash flow for the 4.0 16.4 -75% 20.1 period -------------------------------------------------------------------------------- Unwinded cash flow hedging 9.1 - - 17.6 -------------------------------------------------------------------------------- Paid income taxes 13.6 -29.0 - -36.0 -------------------------------------------------------------------------------- Cash flow from operating activities before change in operating receivables and liabilities -------------------------------------------------------------------------------- 62.0 19.1 225% 39.0 -------------------------------------------------------------------------- Increase (-) or decrease (+) in receivables from -312.4 368.5 - 198.1 operating activities -------------------------------------------------------------------------------- Increase (+) or decrease (-) in liabilities from 4.6 -340.3 - -36.3 operating activities -------------------------------------------------------------------------------- Total cash flow from operating activities -245.9 47.3 - 200.9 -------------------------------------------------------------------------------- Cash flow from investing activities -------------------------------------------------------------------------------- Financial assets held until maturity 9.9 1.4 595% 1.4 -------------------------------------------------------------------------------- Proceeds from sale of group companies and 0.0 0.3 - 0.3 associated companies -------------------------------------------------------------------------------- Investment in tangible and intangible assets -1.9 -2.4 23% -2.8 -------------------------------------------------------------------------------- Disposal of tangible and intangible assets 0.0 0.2 -79% 0.2 -------------------------------------------------------------------------------- Total cash flow from investing activities 8.1 -0.5 - -1.0 -------------------------------------------------------------------------------- Cash flow from financing activities -------------------------------------------------------------------------------- Subordinated liabilities 5.4 3.3 60% 3.6 -------------------------------------------------------------------------------- Increase in unrestricted equity reserve 30.0 - - - -------------------------------------------------------------------------------- Share issue / dividend of Aktia Real Estate 5.9 13.5 -57% 13.5 Mortgage Bank plc to the non-controlling interest -------------------------------------------------------------------------------- Paid dividends -20.0 -20.0 0% -20.0 -------------------------------------------------------------------------------- Total cash flow from financing activities 21.2 -3.1 - -2.9 -------------------------------------------------------------------------------- Change in cash and cash equivalents -216.6 43.6 - 197.0 -------------------------------------------------------------------------------- Cash and cash equivalents at the beginning of the 473.0 275.9 71% 275.9 year -------------------------------------------------------------------------------- Cash and cash equivalents at the end of the period 256.3 319.5 -20% 473.0 -------------------------------------------------------------------------------- Cash and cash equivalents in the cash flow statement consist of the following items: -------------------------------------------------------------------------------- Cash in hand 8.2 8.3 -1% 9.5 -------------------------------------------------------------------------------- Bank of Finland current account 228.0 290.0 -21% 456.8 -------------------------------------------------------------------------------- Repayable on demand claims on credit institutions 20.2 21.3 -5% 6.6 -------------------------------------------------------------------------------- Total 256.3 319.5 -20% 473.0 -------------------------------------------------------------------------------- Adjustment items not included in cash flow consist of: -------------------------------------------------------------------------------- Write-downs on other financial assets 1.8 - - - -------------------------------------------------------------------------------- Write-downs on credits and other commitments 4.6 6.3 -27% 10.5 -------------------------------------------------------------------------------- Change in fair values 2.4 6.5 -63% 7.2 -------------------------------------------------------------------------------- Depreciation and impairment of intangible and 2.4 3.0 -22% 4.0 tangible assets -------------------------------------------------------------------------------- Share of profit from associated companies 0.9 0.3 196% 0.3 -------------------------------------------------------------------------------- Sales gains and losses from intangible and tangible 0.2 0.6 -74% 0.6 assets -------------------------------------------------------------------------------- Unwinded cash flow hedging -8.2 - - -2.5 -------------------------------------------------------------------------------- Other adjustments - -0.4 - 0.0 -------------------------------------------------------------------------------- Total 4.0 16.4 -75% 20.1 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- The segments operating profit The Bank Group has three segments; Banking Business, Asset Management and Miscellaneous. Banking Business comprises Aktia Bank plc's branch office and corporate functions as well as Treasury and the subsidiaries Aktia Real Estate Mortgage Bank plc, Aktia Kort Ab and Aktia Corporate Finance Ltd. Asset Management comprises Aktia Bank plc's Private Banking and the subsidiaries Aktia Asset Management Ltd, Aktia Fund Management Company Ltd and Aktia Invest Ltd. Miscellaneous comprises administration of Aktia Bank plc and return on equity. Operating profit (EUR million) 7-9/2012 7-9/2011 ∆ % --------------------------------------------------------- Banking Business 9.9 6.2 59% --------------------------------------------------------- Asset Management 2.9 1.4 117% --------------------------------------------------------- Miscellaneous -2.7 -0.4 -588% --------------------------------------------------------- Eliminations -0.3 0.0 - --------------------------------------------------------- Total 9.8 7.2 36% --------------------------------------------------------- Operating profit (EUR million) 1-9/2012 1-9/2011 ∆ % --------------------------------------------------------- Banking Business 33.5 31.4 7% --------------------------------------------------------- Asset Management 7.2 4.4 63% --------------------------------------------------------- Miscellaneous -4.5 -1.3 -241% --------------------------------------------------------- Eliminations -1.1 -2.9 63% --------------------------------------------------------- Total 35.2 31.6 11% --------------------------------------------------------- Net interest income (EUR million) 1-9/2012 1-9/2011 ∆ % 2011 ----------------------------------------------------------------------- Deposits and lending 43.6 47.1 -7% 63.0 ----------------------------------------------------------------------- Hedging, interest rate risk management 21.8 27.9 -22% 34.8 ----------------------------------------------------------------------- Other 21.9 23.0 -5% 30.3 ----------------------------------------------------------------------- Net interets income 87.4 98.0 -11% 128.2 ----------------------------------------------------------------------- ----------------------------------------------------------------------- The impact of fixed rate investment is divided into two components consisting of interest rate risk and credit risk. The interest rate risk component is included in 'Hedging of interest rate risk' whereas the credit risk component is booked as a part of 'Other net interest income'. Credit stock Chart 1. Credit stock by sector (EUR million) 30.9.2012 31.12.2011 ∆ Share, % ---------------------------------------------------------------- Households 6,224.6 5,965.6 259.0 85.3,% ---------------------------------------------------------------- Corporate 754.3 811.6 -57.3 10.3,% ---------------------------------------------------------------- Housing associations 278.3 288.7 -10.4 3.8,% ---------------------------------------------------------------- Non-profit organisations 39.0 45.2 -6.2 0.5,% ---------------------------------------------------------------- Public sector entities 4.8 6.0 -1.2 0.1,% ---------------------------------------------------------------- Total 7 ,301.0 7,117.1 184.0 100.0% ---------------------------------------------------------------- Chart 2. Gross loans and 30.9.2012 30.6.2012 31.3.2012 31.12.2011 write-downs (EUR million) -------------------------------------------------------------------------------- Gross loans 7,364.7 7,334.0 7,303.2 7,180.3 -------------------------------------------------------------------------------- Individual write-downs -47.8 -50.2 -49.5 -49.2 -------------------------------------------------------------------------------- Of which made to non-performing -39.4 -42.0 -42.7 -39.2 loans past due at least 90 days -------------------------------------------------------------------------------- Of which made to other loans -8.4 -8.2 -6.9 -10.0 -------------------------------------------------------------------------------- Write-downs by group -15.9 -14.2 -14.1 -14.0 -------------------------------------------------------------------------------- Net loans, balance amount 7 ,301.0 7,269.5 7,239.5 7,117.1 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total write-downs on credits amounted to 0.06 (0.09)% of total lending for the period. The corresponding impact on corporate loans amounted to 0.5 (0.7)% of the total corporate lending. Chart 3. Undischarged debts by time overdue (EUR million) 30.9.2012 % of stock 30.9.2011 % of stock 2011 Days ----------------------------------------------------------------------- 1-30 138 1.88 209 2.97 160 ----------------------------------------------------------------------- of which households 118 1.61 144 2.05 115 ----------------------------------------------------------------------- ----------------------------------------------------------------------- 31-89 54 0.74 61 0.87 53 ----------------------------------------------------------------------- of which households 36 0.49 47 0.66 46 ----------------------------------------------------------------------- ----------------------------------------------------------------------- 90- * 53 0.72 56 0.80 60 ----------------------------------------------------------------------- of which households 38 0.52 39 0.56 36 ----------------------------------------------------------------------- Specification of the fund at fair value (EUR million) 30.9.2012 31.12.2011 ∆ --------------------------------------------------------------- Shares and participations 5.0 - 5.0 --------------------------------------------------------------- Direct interest-bearing securities 31.9 -34.9 66.7 --------------------------------------------------------------- Cash flow hedging 19.0 25.5 -6.5 --------------------------------------------------------------- Fund at fair value, total 55.9 -9.4 65.3 --------------------------------------------------------------- The Bank Group's liquidity portfolio The Bank Group's liquidity portfolio and other interest-bearing investments Aktia Goverment Covered Financial Corporate Real Alternativ Listed Total Bank and Govt. Bonds (CB) institutio bonds estate e Equity Group quaranteed ns exkl. investment CB s -------------------------------------------------------------------------------- -------------------------- 9/12 2011 9/12 2011 9/12 2011 9/12 2011 9/12 2011 9/12 2011 9/12 2011 9/12 2011 -------------------------------------------------------------------------------- -------------------------- EU AAA 136 145 1,269 916 286 309 12 - - - - - - - 1,703 1,370 -------------------------------------------------------------------------------- -------------------------- Finlan 132 61 233 111 43 37 - - - - - - - 407 210 d -------------------------------------------------------------------------------- -------------------------- Other 4 84 1,037 805 243 272 12 - - - - - - - 1,296 1,161 AAA-c ountri es -------------------------------------------------------------------------------- -------------------------- EU < - 51 183 352 - 37 - 2 - - - - - - 183 442 AAA -------------------------------------------------------------------------------- -------------------------- Belgiu - - - - - - - - - - - - - - - - m -------------------------------------------------------------------------------- -------------------------- Greece - - - 2 - - - - - - - - - - - 2 -------------------------------------------------------------------------------- -------------------------- Irelan - - 30 27 - - - - - - - - - - 30 27 d -------------------------------------------------------------------------------- -------------------------- Italy - - 46 60 - - - - - - - - - - 46 60 -------------------------------------------------------------------------------- -------------------------- Portug - 22 54 76 - 8 - 1 - - - - - - 54 107 al -------------------------------------------------------------------------------- -------------------------- Spain - 29 52 187 - 29 - 1 - - - - - - 52 246 -------------------------------------------------------------------------------- -------------------------- Other - - - - - - - - - - - - - - - - count ries -------------------------------------------------------------------------------- -------------------------- Europe - - 232 50 12 30 - - - - - - - - 244 80 exclu ding EU -------------------------------------------------------------------------------- -------------------------- North - - 23 33 - - - - - - - - - - 23 33 Ameri ca -------------------------------------------------------------------------------- -------------------------- Other - - - - - - - - - - - - - - - - OECD- countr ies -------------------------------------------------------------------------------- -------------------------- Supern - - - - 45 43 - - - - - - - - 45 43 ationa ls -------------------------------------------------------------------------------- -------------------------- Others - - - - - - - - - - - - - - - - -------------------------------------------------------------------------------- -------------------------- Total 136 197 1,706 1,350 343 419 12 2 - - - - - - 2,197 1,968 -------------------------------------------------------------------------------- -------------------------- Rating distribution for banking business' liquidity portfolio 30.9.2012 31.12.2011 ------------------------------------------------------- (EUR million) 2,197 1,968 ------------------------------------------------------- Aaa 55.9% 55.6% ------------------------------------------------------- Aa1-Aa3 26.3% 21.9% ------------------------------------------------------- A1-A3 9.0% 11.9% ------------------------------------------------------- Baa1-Baa3 4.5% 6.3% ------------------------------------------------------- Ba1-Ba3 0.4% 1.9% ------------------------------------------------------- B1-B3 0.0% 0.0% ------------------------------------------------------- Caa1 or lower 0.0% 0.0% ------------------------------------------------------- Finnish municipalities (unrated) 3.9% 2.1% ------------------------------------------------------- No rating 0.0% 0.3% ------------------------------------------------------- Total 100.0% 100.0% ------------------------------------------------------- -------------------------------------------------------- Capital adequacy Capital adequacy 30.9.2012 31.12.2011 30.9.2011 ----------------------------------------------------------------- Bank Group ----------------------------------------------------------------- Capital adequacy 19.9% 16.2% 16.6% ----------------------------------------------------------------- Tier 1 ratio 11.8% 10.6% 10.8% ----------------------------------------------------------------- Aktia Bank ----------------------------------------------------------------- Capital adequacy 27.6% 22.3% 22.1% ----------------------------------------------------------------- Tier 1 ratio 16.2% 14.6% 14.3% ----------------------------------------------------------------- Aktia Real Estate Mortgage Bank ----------------------------------------------------------------- Capital adequacy 10.9% 10.2% 10.7% ----------------------------------------------------------------- Tier 1 ratio 9.4% 8.5% 9.0% ----------------------------------------------------------------- Risk exposures for Bank Group -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Consolidated capital adequacy for Bank Group -------------------------------------------------------------------------------- Summary (EUR million) 9/2012 6/2012 3/2012 12/2011 9/2011 -------------------------------------------------------------------------------- Tier 1 capital 440.4 437.9 427.1 392.6 393.4 -------------------------------------------------------------------------------- Tier 2 capital 302.1 268.0 254.5 206.4 210.3 -------------------------------------------------------------------------------- Capital base 742.5 705.9 681.6 599.1 603.7 -------------------------------------------------------------------------------- Risk-weighted amount for credit and 3,355.6 3,369.6 3,395.0 3,321.6 3,294.4 counterpart risks -------------------------------------------------------------------------------- Risk-weighted amount for market - - - - - risks 1) -------------------------------------------------------------------------------- Risk-weighted amount for 372.3 372.3 372.3 372.3 348.6 operational risks -------------------------------------------------------------------------------- Risk-weighted commitments 3,727.9 3,742.0 3,767.3 3,694.0 3,643.1 -------------------------------------------------------------------------------- Capital adequacy ratio, % 19.9 18.9 18.1 16.2 16.6 -------------------------------------------------------------------------------- Tier 1 Capital ratio, % 11.8 11.7 11.3 10.6 10.8 -------------------------------------------------------------------------------- Minimum capital requirement 298.2 299.4 301.4 295.5 291.4 -------------------------------------------------------------------------------- Capital buffer (difference between 444.3 406.5 380.2 303.5 312.3 capital base and minimum requirement) -------------------------------------------------------------------------------- 1) No capital requirement due to minor trading book and when total of net currency positions are less than 2% of capital base. -------------------------------------------------------------------------------- - (EUR million) 9/2012 6/2012 3/2012 12/2011 9/2011 -------------------------------------------------------------------------------- Share capital 163.0 163.0 163.0 163.0 163.0 -------------------------------------------------------------------------------- Funds 74.6 74.6 74.5 44.6 44.6 -------------------------------------------------------------------------------- Non-controlling interest 64.8 64.0 58.3 57.7 58.2 -------------------------------------------------------------------------------- Retained earnings 100.9 100.9 100.0 96.2 95.9 -------------------------------------------------------------------------------- Profit for the period 25.3 18.4 8.8 24.7 22.4 -------------------------------------------------------------------------------- ./. provision for dividends to -15.9 -10.6 -5.3 -21.3 -15.8 shareholders -------------------------------------------------------------------------------- Capital loan 30.0 30.0 30.0 30.0 30.0 -------------------------------------------------------------------------------- Total 442.8 440.3 429.3 394.9 398.3 -------------------------------------------------------------------------------- ./. intangible assets -2.3 -2.4 -2.2 -2.3 -4.9 -------------------------------------------------------------------------------- Tier 1 capital 440.4 437.9 427.1 392.6 393.4 -------------------------------------------------------------------------------- Fund at fair value 36.9 4.4 2.9 -34.9 -31.5 -------------------------------------------------------------------------------- Upper Tier 2 loans 45.0 45.0 45.0 45.0 45.0 -------------------------------------------------------------------------------- Lower Tier 2 loans 220.2 218.6 206.6 196.3 196.7 -------------------------------------------------------------------------------- Tier 2 capital 302.1 268.0 254.5 206.4 210.3 -------------------------------------------------------------------------------- Total capital base 742.5 705.9 681.6 599.1 603.7 -------------------------------------------------------------------------------- Risk-weighted commitments, credit and counterparty risks -------------------------------------------------------------------------------- Total exposures 9/2012 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Risk-weight Balance Off-balance Total assets sheet commitments -------------------------------------------------------------------------------- 0 % 944.4 19.1 963.5 -------------------------------------------------------------------------------- 10 % 1,335.8 - 1,335.8 -------------------------------------------------------------------------------- 20 % 688.7 185.0 873.7 -------------------------------------------------------------------------------- 35 % 5,756.6 64.6 5,821.2 -------------------------------------------------------------------------------- 50 % 0.5 - 0.5 -------------------------------------------------------------------------------- 75 % 555.9 97.2 653.2 -------------------------------------------------------------------------------- 100 % 538.6 61.0 599.5 -------------------------------------------------------------------------------- 150 % 13.2 0.8 14.0 -------------------------------------------------------------------------------- Total 9,833.6 427.7 10,261.4 -------------------------------------------------------------------------------- Derivatives *) 456.9 - 456.9 -------------------------------------------------------------------------------- Total 10,290.5 427.7 10,718.3 -------------------------------------------------------------------------------- *) derivative agreements credit conversion factor -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Risk-weighted exposures (EUR million) -------------------------------------------------------------------------------- Risk-weight 9/2012 6/2012 3/2012 12/2011 9/2011 -------------------------------------------------------------------------------- 0 % - - - - - -------------------------------------------------------------------------------- 10 % 133.6 120.8 125.6 105.1 103.8 -------------------------------------------------------------------------------- 20 % 145.6 155.5 163.9 146.6 158.9 -------------------------------------------------------------------------------- 35 % 2 023.4 2,008.1 1,990.4 1,943.7 1,898.3 -------------------------------------------------------------------------------- 50 % 0.3 0.3 0.3 0.3 0.4 -------------------------------------------------------------------------------- 75 % 437.9 439.9 437.2 450.9 458.0 -------------------------------------------------------------------------------- 100 % 567.8 590.0 614.5 601.8 616.6 -------------------------------------------------------------------------------- 150 % 20.3 28.5 35.3 40.1 30.1 -------------------------------------------------------------------------------- Total 3 328.8 3,343.2 3,367.3 3,288.4 3,266.0 -------------------------------------------------------------------------------- Derivatives *) 26.8 26.5 27.7 33.2 28.4 -------------------------------------------------------------------------------- Total 3 355.6 3,369.6 3,395.0 3,321.6 3,294.4 -------------------------------------------------------------------------------- *) derivative agreements credit conversion factor -------------------------------------------------------------------------------- In capital adequacy measurement to determine the exposure's risk weight, Aktia applies credit rating by Moody's Investors Service or Standard & Poor's to receivables from central goverments and central banks, credit institutions, investment firms, corporates and covered bonds. The risk weight for bank exposures and bonds secured by real estate is determined by the credit rating of the country where the institution is located. -------------------------------------------------------------------------------- - Risk-weighted amounts for operational risks -------------------------------------------------------------------------------- 2011 2010 2009 9/2012 6/2012 3/2012 12/201 9/2011 1 -------------------------------------------------------------------------------- Gross income 187.8 208.5 199.4 -------------------------------------------------------------------------------- - average 3 years 198.6 -------------------------------------------------------------------------------- Capital requirement 29.8 29.8 29.8 29.8 27.9 for operational risk -------------------------------------------------------------------------------- Risk-weighted 372.3 372.3 372.3 372.3 348.6 amount -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- The capital requirement for operational risk is 15% of average gross income during the last three years. The risk-weighted amount is calculated by dividing the capital requirement by 8%. -------------------------------------------------------------------------------- Derivatives and off-balance sheet commitments -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Derivative instruments at 30 Assets, fair Liabilities, September 2012 (EUR million) value fair value -------------------------------------------------------------------------------- Total nominal amount --------------------------------------------------- Hedging derivative instruments ------------------------------------ -------------------------------------------------------------------------------- Fair value hedging -------------------------------------------------------------------------------- Interet rate-related 3,757.0 234.4 37.6 -------------------------------------------------------------------------------- Total 3,757.0 234.4 37.6 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Cash flow hedging -------------------------------------------------------------------------------- Interest rate-related 430.0 9.9 0.0 -------------------------------------------------------------------------------- Total 430.0 9.9 0.0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Derivative instruments valued via the income statement -------------------------------------------------------------------------------- Interest rate-related *) 4,838.2 149.1 156.7 -------------------------------------------------------------------------------- Currency-related 77.5 0.1 0.1 -------------------------------------------------------------------------------- Equity-related **) 104.1 2.0 2.0 -------------------------------------------------------------------------------- Other derivative instruments **) 21.0 0.1 0.1 -------------------------------------------------------------------------------- Total 5,040.8 151.3 158.9 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total derivative instruments -------------------------------------------------------------------------------- Interest rate-related 9,025.2 393.5 194.4 -------------------------------------------------------------------------------- Currency-related 77.5 0.1 0.1 -------------------------------------------------------------------------------- Equity-related 104.1 2.0 2.0 -------------------------------------------------------------------------------- Other derivative instruments 21.0 0.1 0.1 -------------------------------------------------------------------------------- Total 9,227.8 395.7 196.6 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Derivative instruments at 30 September 2011 (EUR million) -------------------------------------------------------------------------------- Total nominal Assets, fair Liabilities, amount value fair value -------------------------------------------------------------------------------- Hedging derivative instruments ------------------------------------ -------------------------------------------------------------------------------- Fair value hedging -------------------------------------------------------------------------------- Interest rate-related 3,940.5 127.0 32.5 -------------------------------------------------------------------------------- Total 3,940.5 127.0 32.5 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Cash flow hedging -------------------------------------------------------------------------------- Interest rate-related 655.0 21.0 0.0 -------------------------------------------------------------------------------- Total 655.0 21.0 0.0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Derivative instruments valued via the income statement -------------------------------------------------------------------------------- Interest rate-related *) 7,339.2 112.2 116.7 -------------------------------------------------------------------------------- Currency-related 90.7 0.6 0.5 -------------------------------------------------------------------------------- Equity-related **) 119.3 2.6 2.6 -------------------------------------------------------------------------------- Other derivative instruments **) 4.2 0.8 0.8 -------------------------------------------------------------------------------- Total 7,553.4 116.2 120.6 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total derivative instruments -------------------------------------------------------------------------------- Interest rate-related 11,934.7 260.2 149.2 -------------------------------------------------------------------------------- Currency-related 90.7 0.6 0.5 -------------------------------------------------------------------------------- Equity-related 119.3 2.6 2.6 -------------------------------------------------------------------------------- Other derivative instruments 4.2 0.8 0.8 -------------------------------------------------------------------------------- Total 12,148.9 264.2 153.1 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- *) Interest-linked derivatives include interest rate hedging provided for local banks which after back-to-back hedging with third parties amounted to EUR 4,478.0 (6,947.0) million. -------------------------------------------------------------------------------- **) All equity-related and other derivative instruments relate to the hedging of structured debt products. -------------------------------------------------------------------------------- Off-lanace sheet commitments -------------------------------------------------------------------------------- (EUR million) 30.9.2012 31.12.2011 30.9.2011 -------------------------------------------------------------------------------- Commitments provided to a third party on behalf of the customers -------------------------------------------------------------------------------- Guarantees 40.0 42.2 45.7 -------------------------------------------------------------------------------- Other commitments provided to a third party 2.7 3.3 3.7 -------------------------------------------------------------------------------- Irrevocable commitments provided on behalf of customers -------------------------------------------------------------------------------- Unused credit arrangements 385.0 419.8 586.4 -------------------------------------------------------------------------------- Off-balance sheet commitments 427.7 465.4 635.8 -------------------------------------------------------------------------------- Outlook (changed 15 October 2012) Aktia is endeavouring to grow above the market in the sectors focusing on retail customers and small companies. In 2012, Aktia's focus is on increasing growth by strengthening customer relations, increasing sales per customer and cross-selling, and developing Internet services. This and the successful operation of the segment Asset Management has increased commission income for the period, contri-buting to the improved outlook for the full-year 2012. Profitability has also been improved through cost savings as well as through effective risk management and capital optimisation. The interest rate derivatives that lifted the net interest income (NII) to an exceptional level have matured. The high NII level from 2009-2011 is therefore not possible to maintain in a low interest rate environment. Write-downs on credits are expected to decrease in 2012 as a whole. Operating profit for 2012 will exceed the level in 2011. (Previously: The operating profit for 2012 is expected to be on the same level as in 2011). Risks Aktia's financial results are affected by many factors, of which the most important are the general economic situation, fluctuations in share prices, interest rates and exchange rates, and the competitive situation. Changes in these factors can have an impact on demand for banking, insurance, asset management and real estate agency services. Change in the interest rate level, yield curves and credit margins are hard to predict and can affect Aktia's interest rate margins and therefore pro-fitability. Aktia is pursuing effective management of interest rate risks. Any future write-downs of loans in Aktia's loan portfolio could be due to many factors, the most important of which are the general economic situation, the interest rate level, the level of unemployment and changes in house prices. The availability of liquidity on the money markets is important for Aktia's refinancing activities. Like other banks Aktia relies on deposits from households in order to service some of its liquidity needs. The market value of Aktia's financial and other assets can change as a result of a requirement for higher returns among investors, among other things. The financial crisis has resulted in many new initiatives for regulating banking and insurance businesses, which has brought uncertainty concerning future equity and liquidity requirements. The results of new regulations are likely to be higher capital requirements, sharpened competition for deposits, higher demands on long-term financing and eventually higher credit margins. In preparing this report the Bank Group has followed the accounting principles applicable to the Annual Report of 31 December 2011. There were no new or revised IFRSs or Interpretations from IFRIC (International Financial Reporting Interpretations Committee) that had any effect on the Group's financial position or explanatory notes in for the period 1 January - 30 September 2012. The figures presented in this stock exchange release are unrevised. Helsinki 8 November 2012 AKTIA BANK PLC Board of Directors CEO Jussi Laitinen, tel. +358 10 247 6250 Deputy CEO, CFO Stefan Björkman, tel. +358 50 63219 IR manager Anna Gabrán, tel. +358 10 247 6501, +358 40 7081807 News Source: NASDAQ OMX 08.11.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Aktia Pankki Oyj Finland Phone: Fax: E-mail: Internet: ISIN: FI0003016360 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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