Aktia Bank Plc’s Financial Statement Release January–December 2021: 2021 – a year of strong growth
February 16 2022 - 1:00AM
Aktia Bank Plc’s Financial Statement Release January–December 2021:
2021 – a year of strong growth
Aktia Bank PlcStock Exchange Release16 February 2022 at 8.00
a.m.
Aktia Bank Plc’s Financial Statement Release
January–December
2021:
2021 – a year of strong
growth
The quarter
in
short
- The growth in lending to companies continued to be strong, in
terms of mortgages the growth was more moderate.
- Assets under management EUR 15.5 billion were approximately at
the same level as in the previous quarter.
- The Common Equity Tier 1 capital ratio (CET1) 11.2% was
somewhat higher than in the previous quarter (10.4%).
- The integration of Taaleri’s wealth management business
progressed as planned, the company was merged with Aktia Bank at
the year-end.
- Aktia became co-owner in Alexander Corporate Finance.
The year in short
- Comparable operating profit for the year, EUR 87.4 (55.1)
million, was the highest in the history of Aktia.
- Comparable income increased by 31% during the year.
- Growth in all income categories, the acquisition of Taaleri’s
wealth management operations supported the increase in commission
income.
- Aktia to become a wealth manager bank ─ according to the
strategy update in autumn, the focus is on close cooperation
between business areas (banking, asset management, life
insurance).
Outlook
2022
The comparable operating profit for 2022 is expected to be
somewhat higher than in 2021 provided that the market development
and circumstances in society remain stable.
Dividend
The Board of Directors proposes a dividend of EUR 0.56 per
share.
Mikko Ayub, CEO:
Aktia did historically well in 2021. The comparable operating
profit was EUR 87.4 (55.1) million and increased by 59% from the
previous year. I am therefore very pleased with how Aktia did last
year and proud of the valuable work that the Aktia employees have
done in these exceptional circumstances. At the same time, it is
worth bearing in mind that the reference period 2020 was burdened
by the outbreak of the coronavirus pandemic and its impact on the
market.
Aktia’s comparable operating income for 2021 increased 31% to
EUR 263.2 (201.1) million. The development of the net interest
income in the last quarter of the year and throughout the year was
once again evenly strong and demonstrates the steady performance of
Aktia's banking business in different market environments. Aktia's
loan book increased by approximately 7% during the year, driven
particularly by small and medium-sized companies. I therefore see a
great deal of growth potential in Aktia's corporate business,
supported by Aktia's recent 20% minority shareholding in the
investment bank Alexander Corporate Finance. The demand for
mortgage loans also remained strong throughout the year in line
with our conservative lending policy.
Aktia's commission income also increased strongly from last
year. The acquisition of Taaleri's wealth management business
partly explains the increase from last year, but the commission
income has increased also organically. The negative net
subscriptions for the last quarter are associated with a change in
the allocation of one institutional client. I am particularly
pleased with the tremendous performance of Aktia Private Banking in
the past year – good growth continued throughout the year, both in
terms of income and customer volumes. Long-term development,
high-quality asset management and a genuinely personalised service
were also reflected in the results: In Prospera customer survey,
Aktia Private Banking took an excellent second place.
Life insurance business has done well in the past year. The
sales of both personal insurances and investment-linked insurances
continued to be good. In November, Aktia Life Insurance Ltd also
issued its first ever inaugural Tier 2 transaction (EUR 56
million), which strengthened its solvency.
Aktia's comparable expenses for the entire year amounted to EUR
171.1 (141.9) million and increased by approximately one fifth from
last year. The main explanation for the increase in expenses is the
normal operative cost structure that has increased as a result of
the acquisition of Taaleri's wealth management business. On 31
December 2021, Aktia's CET1 capital ratio was 11.2% (10.4%; 30
Sept. 2021), which is clearly above the regulatory requirement
imposed on Aktia and in line with the company's own financial
objectives.
Aktia's Board of Directors proposes in line with our dividend
policy that a dividend of EUR 0.56 per share be paid for 2021,
which constitutes 60% of the profit for the reporting period.
Traditionally, Aktia has been a reliable payer of dividends – now
combined with a clear growth strategy.
The integration of Taaleri's
wealth management business progressed as
planned
The acquisition of Taaleri’s wealth management business last
spring was not only the largest transaction in Aktia's history, but
also a clear step towards our vision of being the leading wealth
manager bank in Finland. The cooperation concerning alternative
investment products between Aktia and Taaleri, which was brought
about by the transaction, began at the end of the year with the
mutual Asunto VIII private equity fund. The integration of business
functions has been completed in many respects, although certain
system integrations will continue throughout this year. The planned
combinations of equity and fixed income funds were carried out
before the merger of the fund management companies at the year-end.
Aktia's portfolio management was also strengthened by several new
recruits during the end of the year, and Aktia has one of Finland's
largest and most versatile portfolio management teams.
The implementation of the strategy we updated this autumn has
started smoothly: we have carried out many of Aktia's wealth plans
for our customers through good cooperation between all business
areas. Thus, we are in a good position when the new year
starts.
Key figures
(EUR million) |
Q4/2021 |
Q4/2020 |
∆ % |
2021 |
2020 |
∆ % |
Q3/2021 |
∆ % |
Q2/2021 |
Q1/2021 |
Net interest income |
24.1 |
20.8 |
16% |
96.2 |
80.7 |
19% |
23.1 |
4% |
27.7 |
21.3 |
Net commission income |
33.7 |
25.4 |
33% |
124.0 |
97.6 |
27% |
33.5 |
0% |
31.7 |
25.0 |
Net income from life insurance |
7.6 |
10.2 |
-26% |
37.7 |
19.9 |
89% |
9.7 |
-22% |
10.5 |
9.9 |
Total operating income |
65.5 |
57.0 |
15% |
263.8 |
201.1 |
31% |
67.1 |
-2% |
73.3 |
57.9 |
Operating expenses |
-45.2 |
-36.4 |
24% |
-174.4 |
-142.2 |
23% |
-41.6 |
-9% |
-48.8 |
-38.7 |
Impairment of credits and other commitments |
0.1 |
-0.8 |
- |
-4.5 |
-4.0 |
11% |
-1.0 |
- |
-1.4 |
-2.2 |
Operating profit |
20.3 |
19.7 |
3% |
84.6 |
54.8 |
54% |
24.4 |
-17% |
23.0 |
16.9 |
Comparable operating income1 |
65.5 |
57.0 |
15% |
263.2 |
201.1 |
31% |
66.5 |
-1% |
73.3 |
57.9 |
Comparable operating expenses1 |
-44.9 |
-36.3 |
24% |
-171.1 |
-141.9 |
21% |
-41.6 |
-8% |
-45.9 |
-38.7 |
Comparable operating profit1 |
20.7 |
19.8 |
4% |
87.4 |
55.1 |
59% |
23.8 |
-13% |
26.0 |
16.9 |
Cost-to-income ratio |
0.69 |
0.64 |
8% |
0.66 |
0.71 |
-7% |
0.62 |
11% |
0.67 |
0.67 |
Comparable cost-to-income ratio1 |
0.69 |
0.64 |
7% |
0.65 |
0.71 |
-8% |
0.63 |
10% |
0.63 |
0.67 |
Earnings per share (EPS), EUR |
0.23 |
0.22 |
5% |
0.95 |
0.61 |
56% |
0.28 |
-18% |
0.24 |
0.20 |
Comparable earnings per share (EPS), EUR 1)1 |
0.23 |
0.22 |
8% |
0.98 |
0.61 |
60% |
0.27 |
-13% |
0.28 |
0.20 |
Return on equity (ROE), %3 |
9.5 |
9.2 |
3% |
10.0 |
6.7 |
50% |
11.4 |
-17% |
10.5 |
8.6 |
Comparable return on equity (ROE), %1,3 |
9.6 |
9.3 |
4% |
10.3 |
6.7 |
54% |
11.2 |
-14% |
12.3 |
8.6 |
Common Equity Tier 1 capital ratio (CET1), %2 |
11.2 |
14.0 |
-20% |
11.2 |
14.0 |
-20% |
10.4 |
8% |
10.8 |
13.8 |
Dividend per share (proposal from the Board of Directors), EUR |
|
|
|
0.56 |
0.43 |
30% |
|
|
|
|
1) Alternative performance measures excluding items affecting
comparability2) At the end of the period3) The ROE definition has
been updated
Webcast from the results
conference
A live webcast from the results event will take place on 16
February 2022 at 10.30 a.m. CEO Mikko Ayub and CFO Outi Henriksson
will present the results. The event is held in English and can be
seen live at https://aktia.videosync.fi/2021-q4-results. A
recording of the webcast will be available at www.aktia.com after
the event.
AKTIA BANK PLC
For more information: Outi Henriksson, CFO, tel. +358
10 247 6236Lotta Borgström, Director, Investor Relations and
Communications, tel. +358 10 247 6838, lotta.borgstrom (at)
aktia.fi
Distribution:Nasdaq Helsinki LtdCentral mediawww.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 900 people around Finland. Aktia's assets under
management (AuM) on 31 December 2021 amounted to EUR 15.5 billion,
and the balance sheet total was EUR 11.7 billion. Aktia's shares
are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.
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