Aktia Bank plc: Interim report 1 January - 30 June 2014

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| Source: Aktia Pankki Oyj
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Helsinki, Finland, 2014-08-05 07:00 CEST (GLOBE NEWSWIRE) --  

Aktia Bank plc
Interim report 1 January-30 June 2014
5 August 2014 at 8.00 a.m.

 

HIGHER COMMISSION INCOME AND LOWER COSTS

CEO JUSSI LAITINEN

”Sales continued to increase even though the general market situation has not improved. Net commission income increased during the first half-year and Action Plan 2015 measures have resulted in cost-cuts. Our core banking project proceeds, and the new platform is planned to be taken into operation in 2015. As expected, the persistent low interest rate level had a negative impact on net interest income. In the second quarter the demand for housing loans and the number of household loans increased. Our customers desire to secure their finances can be seen in the increased volumes of payment protection insurance and an increased interest in monthly saving plans. Aktia’s Core Tier 1 capital ratio strengthened further to 13.8%, exceeding regulatory requirements.”

APRIL-JUNE 2014: OPERATING PROFIT EUR 22.0 (15.1) MILLION

  • The Group’s operating profit amounted to EUR 22.0 (15.1) million and profit for the period amounted to EUR 17.9 (11.0) million
  • Net commission income increased by 5% to EUR 19.6 (18.6)  million. Net interest income (NII) amounted to EUR 25.9 (28.3) million.
  • Earnings per share (EPS) increased to EUR 0.27 (0.16)

JANUARY- JUNE 2014: OPERATING PROFIT eur 38.4 (34.6) MILLION

  • The Group’s operating profit amounted to EUR 38.4 (34.6) million and profit for the period amounted to EUR 31.0 (25.8) million.
  • Net commission income increased by 8% to EUR 38.4 (35.5) million and borrowing increased to EUR 3,978 (3,797) million. However, net interest income (NII) decreased to EUR 51.4 (58.4) million.
  • Earnings per share (EPS) stood at EUR 0.46 (0.38).
  • According to the Basel III capital requirement the capital adequacy ratio stood at 17.8% and the Core Tier 1 capital ratio at 13.8%.
  • Equity per share stood at EUR 8.96 (31 December 2013: 8.67).
  • Write-downs on credits and other commitments decreased to EUR 1.2 (1.5) million.
  • OUTLOOK 2014 (unchanged): Despite the persistent low interest rate level, the Group’s operating profit for 2014 is expected to reach approximately the 2013 level.

 

KEY FIGURES
(EUR million)
4-6/ 2014 4-6/ 2013 ∆ %      1-6/ 2014 1-6/ 2013 ∆ %      1-3/ 2014 ∆ % 2013
Net interest income 25.9 28.3 -8% 51.4 58.4 -12% 25.4 2% 112.6
Net commission income 19.6 18.6 5% 38.4 35.5 8% 18.8 4% 70.7
Total operating income 58.4 55.7 5% 110.5 113.2 -2% 52.0 12% 224.2
Total operating expenses -36.2 -39.2 -8% -72.3 -76.8 -6% -36.1 0% -157.2
Write-downs on credits and other commitments -0.8 -0.4 82% -1.2 -1.5 -23% -0.4 88% -2.7
Operating profit 22.0 15.1 46% 38.4 34.6 11% 16.4 34% 65.4
Cost-to-income ratio 0.64 0.70 -9% 0.68 0.68 0% 0.72 -11% 0.72
Earnings per share (EPS), EUR 0.27 0.16 66% 0.46 0.38 20% 0.20 35% 0.78
Equity per share (NAV)1, EUR 8.96 8.34 7% 8.96 8.34 7% 8.55 5% 8.67
Return on equity (ROE), % 11.1 6.9 60% 9.5 8.1 18% 8.2 34% 8.1
Core Tier 1 capital ratio1, % * 13.8 - - 13.8 - - 13.6 1% 12.1
Capital adequacy ratio1, % ** 17.8 20.3 -12% 17.8 20.3 -12% 17.3 3% 19.3
Tier 1 capital ratio1, % ** 13.8 12.1 14% 13.8 12.1 15% 13.6 2% 12.3
Write-downs on credits / total credit stock, % 0.01 0.01 0% 0.02 0.02 0% 0.01 0% 0.04
1) At the end of the period
* According to Basel III, **2014 according to Basel III, other periods 2013 according to Basel II
The Interim report January-June 2013 is a translation of the original Swedish version ”Delårsrapport 1.1-30.6.2014”. In case of discrepancies, the Swedish version shall prevail.                         

 


 

         CEO Jussi Laitinen, tel. +358 10 247 6250
         CFO Fredrik Westerholm, tel +358 10 247 6505
         IR Anna Gabrán, tel. +358 10 247 6501