eQ's INTERIM REPORT 1-9/2007
(Translation of Finnish language original)
January - September 2007:
- Net revenues EUR 36.7 million (EUR 31.2 million)
- Operating profit EUR 10.6 million (EUR 10.7 million)
- Earnings per share EUR 0.23 (EUR 0.32)
- Return on equity 14.8 per cent, annualised
July - September, Q3/07:
- Net revenues EUR 10.4 million (EUR 7.8 million)
- Operating profit EUR 2.8 million (EUR 1.9 million)
- Earnings per share EUR 0.06 (0.05)
eQ Group's revenue growth continued during the reporting period January -
September 2007. Group net revenue increased by 18 % to EUR 36.7 million. The
growth was strongest in Asset Management (+30 %) and in Securities Brokerage
(+26 %). The operating profit was EUR 10.6 million compared to EUR 10.7 million
during the same period last year.
Net revenue for the third quarter was EUR 10.4 million, an increase of 34 %
over last year's Q3 figure. The operating profit was EUR 2.8 million (Q3 2006:
EUR 1.9 million).
eQ GROUP, KEY FIGURES
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| | | | | | | |
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| (EUR 1 000) | | | Change | | | Change |
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| | Q3/07 | Q3/06 | y-on-y | 1-9/07 | 1-9/06 | y-on-y |
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| Net revenues from | | | | | | |
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| financial operations | 1 811 | 1 405 | 42 % | 5 408 | 3 688 | 47 % |
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| Net commission | 7 690 | 5 099 | 51 % | 26 237 | 23 845 | 10 % |
| income | | | | | | |
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| Other income | 933 | 1 282 | -27 % | 5 098 | 3 674 | 39 % |
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| Net revenues in | 10 43 | 7 785 | 34 % | 36 743 | 31 207 | 18 % |
| total | 4 | | | | | |
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| Operating profit | 2 844 | 1 883 | 51 % | 10 648 | 10 741 | -1 % |
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| Earnings/share EUR | 0.06 | 0.05 | 20 % | 0.23 | 0.32 | -28 % |
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Operating profit for business areas
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| (EUR 1 000) | | | Change | | | Change |
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| | Q3/07 | Q3/06 | y-on-y | 1-9/07 | 1-9/06 | y-on-y |
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| Securities Brokerage | 1 407 | 370 | 280 % | 3 271 | 2 594 | 26 % |
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| Asset management | 494 | 662 | -25 % | 4 474 | 3 444 | 30 % |
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| Corporate Finance | 881 | 834 | 6 % | 2 772 | 4 765 | -42 % |
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| Hosting | 62 | 17 | 265 % | 131 | -62 | 311 % |
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OPERATING ENVIRONMENT
The operating environment during the third quarter was marked by the sub-prime
credit crises which caused wide spread turbulence in the financial markets.
While eQ is not dependent on short term funding in the interbank market, the
sharp increase in short term interest rates decreased the value of our money
market positions reducing the net interest margin recorded for the quarter. The
equity markets were surprisingly unaffected by the credit squeeze with the
Helsinki Stock Exchanges general index actually increasing during the quarter.
The volatility in equity markets experienced during the quarter resulted in
increased activity among eQ's customers.
INCOME AND PROFIT
eQ Group's net revenues for the first nine months increased by 18 % compared to
the corresponding period of 2006. The growth was especially strong in Asset
management services, with a 30 % increase in revenue. The increase in asset
management revenues is due to the increased number of customers and the increase
in assets under management. The net revenues of Securities brokerage services
increased by 26 % as a result increased customer activity, a larger number of
customers and gains in proprietary trading. The revenues of Corporate finance
were, as expected, lower than on the previous year.
eQ Group's costs January - September 2007 increased by 27 per cent compared to
the previous year. The increase is due to investments in growth in all eQ's
business areas. In addition the acquisition of the majority of eQ shares and the
subsequent public tender offer during Q2 by Straumur resulted in extraordinary
costs. The combined effect of these increases in costs resulted in an operating
profit totalling EUR 10.6 million, being at the same level as last year.
At the end of September 2007 eQ had approximately 52 500 customers, which is 16
per cent more compared to the previous year.
The group balance sheet is strong: the shareholders' equity at the end of
September was EUR 68.1 million and the consolidated capital adequacy ratio was
12.0 %.
BUSINESSES
Securities Brokerage services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q3/07 | Q3/06 | y-on-y | 1-9/07 | 1-9/06 | y-on-y |
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| Net revenues | 4 626 | 3 186 | 45 % | 13 807 | 12 607 | 10% |
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| Operating profit | 1 407 | 370 | 280% | 3 271 | 2 594 | 26 % |
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| Personnel | 35 | 36 | -3 % | 35 | 36 | -3 % |
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The net revenues of securities brokerage services were EUR 13.8 million, a 10
per cent increase to the previous year. The third quarter revenue was
significantly higher (+ 45%) than during Q3 last year as a factor of higher
customer activity and increased revenue for the proprietary trading. As a result
of the growth in revenue and efficient cost control, the operating profit
increased by 26 per cent compared to the first nine months of 2006.
eQ's share of trades executed on the Helsinki Stock Exchange in January -
September was 4.3 % and the share of the euro volume 3.3 %. eQ's market share
during the third quarter was 3.7 % (trades) and 2.9 % (volume).
During the review period eQ introduced the improved Redeye analysis, which help
the customers with comparing and monitoring the Nordic listed companies.
Additionally, five new listed companies were added to eQ's Research Library.
Asset management services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q3/07 | Q3/06 | y-on-y | 1-9/07 | 1-9/06 | y-on-y |
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| Net revenues | 3 453 | 2 626 | 31 % | 15 194 | 9 997 | 52 % |
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| Operating profit | 494 | 662 | -25 % | 4 474 | 3 444 | 30 % |
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| Personnel | 46 | 29 | 59 % | 46 | 29 | 59 % |
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| Assets under | 1 886 | 857 | 120 % | 1 886 | 857 | 120 % |
| management, MEUR | | | | | | |
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| Deposits, MEUR | 540 | 401 | 35 % | 540 | 401 | 35 % |
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| Loans, MEUR | 63 | 48 | 31 % | 63 | 48 | 31 % |
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eQ Bank's assets under management include deposits, discretionary asset
management and mutual funds. Discretionary asset management and mutual funds
include partly the same funds.
The net revenues of asset management services had a strong increase to EUR 15.2
million (EUR 10.0 million), an increase of approximately 52 per cent compared to
the previous year. The operating profit was EUR 4.5 million, an increase of
30%.
In January-September 2007 eQ's assets under management (including deposits)
increased by 120 per cent compared to the previous year totaling EUR 1.9
billion. The sub-prime credit crises in the U.S. caused a wide spread turbulence
in the interest market in August-September 2007, which had a negative effect on
the development of fixed income funds.
In June a new business unit of asset management, eQ Private Bank, was launched
and Antti Pietiäinen was appointed to Director of eQ Private Bank.
eQ Bank and American Express started cooperation in September 2007.
After the reporting period eQ announced that it will open a new branch office
in Turku. The Turku office specialises in asset management services to both
private persons and institutions.
In October 2007 eQ Bank has arranged a capital-guaranteed index-linked bond Next
11. The bond invests in new growth markets and the subscription period ends on
29 October 2007.
In October the first corporate bond fund investing in emerging markets, eQ
Emerging Markets Corporate debt fund, has been launched in Finland.
Corporate Finance services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q3/07 | Q3/06 | y-on-y | 1-9/07 | 1-9/06 | y-on-y |
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| Net revenues | 1 516 | 1 308 | 16 % | 4 778 | 6 555 | -27 % |
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| Operating profit | 881 | 834 | 6 % | 2 772 | 4 765 | -42 % |
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| Personnel | 16 | 12 | 33 % | 16 | 12 | 33 % |
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eQ Bank's Advium Corporate Finance unit has acted as a financial advisor in
twelve transactions during January - September 2007.
During the review period Advium acted as financial advisor for example to
Finnish investors led by private equity investor Sentica Partners in the
divestment of Elematic Group Oy to a private equity fund managed by Pamplona
Capital Management LLP. Furher, Advium acted as the financial advisor to Veritas
Pensions Insurance Company, Veritas Life Insurance and Veritas Mutual Non-Life
Insurance in the divestment of five properties to funds managed by DEGI Deutsche
Gesellschaft für Immobilienfonds mbH.
The personnel of Advium has grown and amounted to 16 at the end of September.
Due to the fact that success fees play an important role in the corporate
finance business, the unit's performance can fluctuate significantly between
quarters.
Hosting services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q3/07 | Q3/06 | y-on-y | 1-9/07 | 1-9/06 | y-on-y |
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| Net revenues | 1 148 | 1 057 | 9 % | 3 892 | 2 976 | 31 % |
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| External revenues | 839 | 665 | 26 % | 2 964 | 2 048 | 45 % |
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| Internal revenues | 309 | 392 | -21 % | 928 | 928 | 0 % |
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| Operating profit | 62 | 17 | 265 % | 131 | -62 | 311 % |
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| Personnel | 18 | 15 | 20 % | 18 | 15 | 20 % |
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During the second and third quarter of 2007 the operating environment of Xenetic
has been under changes by consolidations in the sector. Many competitors, on the
same size as Xenetic, have been acquired by larger companies. Management
perceives the said consolidation positive as it clears up the company's
operating environment; there remain very few ITC-managed service providers in
Finnish market with focus on flexibility and business critical systems.
The net revenues have increased during the third quarter as planned totalling
EUR 3.9 million. The positive increase in profitability was mainly due to
successful new customer business and the operating profit during the period was
EUR 0.1 million. The major investments carried out in 2006 weaken the
profitability of Xenetic compared to the sector average.
The amount of personnel in Xenetic has grown and the number of professionals at
the end of September was 18.
INVESTMENTS
eQ Group's investments in January - September totalled EUR 2.1 million, of which
EUR 1.3 million were directed to tangible assets (EUR 2.6 million of which EUR
2.3 million were directed to tangible assets in 1-9/2006).
CAPITAL ADEQUACY
At the end of September 2007 the group capital adequacy ratio was 12.0%.
The profit for the reporting period has not been included in Tier 1 own funds.
PERSONNEL
At the end of September eQ Group had 171 employees (150). The head count
consists of staff working permanently or for a fixed term of at least six
months.
THE FINAL RESULT OF STRAUMUR'S PUBLIC TENDER OFFER
The public tender offer by Straumur-Burdaras Investment Bank hf for all issued
and outstanding shares and option rights in eQ Corporation terminated on July 3,
2007. Straumur-Burdaras' holding in eQ after termination of the tender offer is
a total of 32 410 347 shares representing about 96.13 per cent of shares issued
by eQ and of votes attached to them.
Straumur has on 6 August 2007 given a notification according to which
Straumur's holding of the shares and votes in eQ has exceeded nine tenths
(9/10) and that Straumur has a right according to Chapter 18, Section 1 of the
Finnish Companies Act to redeem all shares from the minority shareholders in eQ
at a price of EUR 7.60 per share.
REDEMPTION OF SHARES
Straumur has initiated minority redemption proceedings in accordance with
Chapter 18 of the Companies Act to acquire the minority shares in eQ. The
Arbitral Tribunal appointed by the Redemption Committee of the Central Chamber
of Commerce has, thus far, not confirmed the schedule in the matter. Provided
that the Arbitral Tribunal confirms that Straumur's redemption right is clear,
Straumur is entitled to gain title to all the shares in eQ by placing a security
approved by the Arbitral Tribunal for the payment of the redemption price.
EXTRAORDINARY GENERAL MEETING
An Extraordinary General Meeting of eQ Corporation was held on June 25, 2007.
The meeting elected a new Board of Directors for the company for a term, which
lasts until the end of the next Annual General Meeting. The Extraordinary
General meeting re-elected Mr Antti Pankakoski and Mr Petteri Walldén as members
of the Board of Directors and elected Mr William Fall and Mr Antti Mäkinen as
new members of the Board.
The Board of Directors elected William Fall as Chairman of the Board.
SHARES AND SHARE CAPITAL
At the end of September 2007 the consolidated shareholders' equity was EUR 68.1
million and the share capital was EUR 5 731 286.33 divided over 33 713 449
shares. The weighted average number of shares during the review period was
33 713 449. Equity per share was EUR 2.01. eQ Corporation had 1 765 shareholders
on September 30, 2007.
During January - September 2007 the highest share price (quoted) on the Helsinki
Stock Exchange was EUR 7.61 and the lowest EUR 4.68. At the end of the period
eQ's share price was EUR 7.60 and the market capitalisation EUR 256.2 million. A
total amount of 44 053 765 shares, representing 130 % of the company's shares
and corresponding to a turnover of EUR 321 261 552 were traded during the
period.
RISKS
eQ Corporation's main risks are classified as credit risks, market risks,
operational risks and business risks.
eQ Bank's credit risk management aims to prevent and mitigate the situations,
where customer or other counterparty fails to fulfil their agreed obligations.
Credit risk is limited through measures such as counterparty limits, which are
defined according to the bank's own funds. Well-defined credit granting process
helps mitigating the credit risk. Also, the bank primarily grants credit only
against collateral. During the reporting period there were no credit losses.
Market risk refers to the risk of loss resulting from changes in interest rates,
equity prices or exchange rates. The Board of eQ has accepted the market risk
principles and the risk limits. Market risks are managed by trading limits,
which are supervised by independent risk management unit on daily basis.
Interest rate risk within eQ Bank's customer business is minor because most
deposits and lending have equal interest rate bindings. Interest rate risk is
monitored through sensitivity of net interest income to changes in the interest
rate level. Treasury unit is responsible for corporation's liquidity and bank's
funding and also for the management of the credit risk, currency risk and
counterparty risk. The requirements for liquidity are monitored on a daily
basis.
Operational risks refer to the risk of loss resulting from factors such as
inadequate or failed internal processes, personnel, systems or external factors.
Operational risks are managed by measures such as developing internal processes,
ensuring sufficient guidance and using collateral and insurance policies.
Contingency plans have been put in place to cope with major disturbances to
operations. The earnings impact of operational risks during the period has been
minor.
OUTLOOK
The revenues of the eQ Group as well as the profitability are very sensitive to
the development of the equity and fixed income markets. In corporate finance
business the revenues are highly dependent on receiving success fees as well as
the timing of those. Due to these reasons the financial performance of eQ Group
may fluctuate significantly between quarters.
Provided that the capital markets remain reasonably stable during the remainder
of the year, it is likely that the operating profit for the fourth quarter will
be at the level of or higher than that recorded during the third quarter.
POST BALANCE SHEET DATE EVENTS
ARBITRAL TRIBUNAL APPOINTED IN THE REDEMPTION PROCEEDINGS REGARDING THE SHARES
IN eQ
The Redemption Committee of the Finnish Central Chamber of Commerce has,
according to its letter dated 2 October 2007, on 24 September 2007 appointed an
Arbitral Tribunal to decide upon the price and the redemption right to the
shares in eQ Corporation that are not owned by Straumur-Burdaras Investment Bank
hf. The Arbitral Tribunal consists of Markus Troberg, Attorney-at-law.
DE-LISTING OF eQ CORPORATION
As Straumur-Burdaras Investment Bank hf. holds over 97 percent of all the shares
in eQ Corporation the Board of Directors of eQ has resolved to apply for the
termination of trading with the eQ shares and for the delisting of the shares
from the official list of OMX Nordic Exchange Helsinki Oy. An application for
delisting has been filed with OMX Helsinki on 12 October 2007. The OMX Helsinki
has announced on October 22 2007 that the shares of eQ Corporation will be
delisted from the OMX Nordic Exchange Helsinki when the ownership of all shares
of eQ Corporation has been transferred to the redeemer in the redemption
process.
eQ Corporation
The Board
For further information:
Antti Mäkinen tel. +358 9 6817 8686
CEO mobile +358 50 561 1501
eQ Corporation e-mail antti.makinen@eQ.fi
Distribution:
Helsinki Stock Exchange
Main media
www.eQ.fi
This third Interim Financial Report of the year 2007 does not include the
information of related parties according to IAS 34 standard because there have
not been any essential changes compared to the financial statements of 2006.
Otherwise the report has been prepared according to the IAS standard 34 (interim
reports). The interim report has been prepared under the same principles as the
Financial Statements of 2006. The report is unaudited.
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| CONSOLIDATED BALANCE SHEET (IFRS) | 30.9.2007 | 30.9.2006 | 31.12.2006 |
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| EUR 1000 | | | |
--------------------------------------------------------------------------------
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| ASSETS | | | |
--------------------------------------------------------------------------------
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| Liquid assets | 61 | 40 | 40 |
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| Claims on credit institutions | 145 052 | 145 691 | 91 508 |
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| Financial assets held for trading | 266 798 | 117 235 | 189 188 |
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| Available-for-sale financial assets | 169 122 | 171 770 | 168 216 |
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| Claims on the public and public | 61 931 | 44 102 | 54 866 |
| sector entities | | | |
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| Investment in associates | 0 | 60 | 30 |
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| Intangible assets | 27 343 | 18 913 | 27 745 |
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| Tangible assets | 4 943 | 4 548 | 4 699 |
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| Other assets | 172 289 | 175 566 | 89 198 |
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| Deferred tax assets | 793 | 3 616 | 1 661 |
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| TOTAL ASSETS | 848 333 | 681 542 | 627 150 |
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| EQUITY AND LIABILITIES | | | |
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| LIABILITIES | | | |
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| Liabilities to credit institutions | 89 | 0 | 90 |
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| Liabilities to the public and public | 537 778 | 400 004 | 435 833 |
| sector entities | | | |
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| Derivative financial instruments | | | |
--------------------------------------------------------------------------------
| and other liabilities held for | 21 564 | 34 672 | 15 571 |
| trading | | | |
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| Other liabilities | 217 842 | 178 205 | 101 003 |
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| Tax liabilities | 1 843 | 0 | 15 |
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| Deferred tax liabilities | 1 019 | 822 | 993 |
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| TOTAL LIABILITIES | 780 135 | 613 704 | 553 505 |
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| EQUITY CAPITAL | | | |
--------------------------------------------------------------------------------
| Share capital | 5 731 | 5 731 | 5 731 |
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| Share premium account | 48 675 | 48 675 | 48 675 |
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| Reserve fund | 2 106 | 2 106 | 2 106 |
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| Fair value reserve | 149 | 189 | 0 |
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| Retained earnings | 11 482 | 11 086 | 17 131 |
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| Total equity attributable to equity | 68 143 | 67 788 | 73 644 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
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| Minority interest | 55 | 50 | 0 |
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| TOTAL EQUITY | 68 198 | 67 838 | 73 644 |
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| TOTAL EQUITY AND LIABILITIES | 848 333 | 681 542 | 627 150 |
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| OFF-BALANCE SHEET COMMITMENTS | 30.9.2007 | 30.9.2006 | 31.12.2006 |
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| Credit limits not in use | 77 078 | 56 161 | 59 023 |
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| CONSOLIDATED PROFIT AND LOSS | 1.1.-30.9.20 | 1.1.-30.9. | 1.1. - |
| ACCOUNT (IFRS) | 07 | 2006 | 31.12.2006 |
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| EUR 1000 | | | |
--------------------------------------------------------------------------------
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| Interest income | 16 378 | 9 637 | 14 075 |
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| Interest expense | -10 970 | -5 949 | -8 762 |
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| Net interest income | 5 408 | 3 688 | 5 312 |
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| Fee and commission income | 32 571 | 28 378 | 43 293 |
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| Fee and commission expense | -6 334 | -4 533 | -6 059 |
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| Net fee and commission income | 26 237 | 23 845 | 37 233 |
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| Impairment of receivables | -21 | 7 | 10 |
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| Net income from financial assets | 1 850 | 1 463 | 2 393 |
| held for trading | | | |
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| Net income from available-for-sale | 112 | 60 | 377 |
| financial assets | | | |
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| Net income from foreign exchange | 64 | 25 | 59 |
| dealing | | | |
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| Other operating income | 3 094 | 2 119 | 2 901 |
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| Total income | 36 743 | 31 207 | 48 285 |
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| Administrative expenses | | | |
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| | Staff costs | -13 298 | -10 622 | -15 893 |
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| | Other administrative expenses | -8 883 | -6 741 | -9 360 |
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| Total administrative expenses | -22 182 | -17 363 | -25 252 |
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| Depreciation and write-downs on | | | |
| tangible | | | |
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| and intangible assets | -2 253 | -1 714 | -2 349 |
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| Other operating expenses | -1 630 | -1 372 | -1 917 |
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| Share of associated companies' | -30 | -17 | -47 |
| results | | | |
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| Net operating profit | 10 648 | 10 741 | 18 720 |
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| Income taxes | -2 783 | -69 | -2 007 |
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| Profit for the financial year | 7 866 | 10 672 | 16 713 |
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| Attributable to: | | | |
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| | Equity holders of the parent | 7 836 | 10 724 | 16 765 |
| | company | | | |
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| | Minority interests | 30 | -53 | -52 |
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| Earnings per share, EUR | 0,23 | 0,32 | 0,50 |
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| Earnings per share, diluted, EUR | 0,23 | 0,32 | 0,50 |
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| CONSOLIDATED CASH FLOW STATEMENT | 1.1.-30.9 | 1.1.-30.9. | 1.1. - |
| (IFRS) | .2007 | 2006 | 31.12.2006 |
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| | EUR 1000 | | | |
--------------------------------------------------------------------------------
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| | Cash flow from operating | | | |
| | activities | | | |
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| | Net operating profit | 10 648 | 10 741 | 18 720 |
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| | Adjustments: | 8 053 | 582 | 1 234 |
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| | Change in working capital | -7 668 | 5 582 | 19 173 |
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| | Income taxes paid | -178 | -54 | -44 |
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| | Cash flow from operating | 10 855 | 16 850 | 39 083 |
| | activities | | | |
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| | Cash flow from investing | | | |
| | activities | | | |
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| | Investments in intangible and | -1 931 | -2 674 | -3 351 |
| | tangible assets | | | |
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| | Other investments | -258 | -164 | -164 |
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| | Acquisitions of subsidiaries | | | -5 446 |
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| | Cash flow from investing | -2 189 | -2 838 | -8 960 |
| | activities | | | |
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| | Cash flow from financing | | | |
| | activities | | | |
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| | Share issue | 25 | 585 | 585 |
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| | Payment of dividend | -13 482 | -6 678 | -6 678 |
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| | Cash flow from financing | -13 457 | -6 093 | -6 093 |
| | activities | | | |
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| | Change in cash and cash | -4 791 | 7 920 | 24 029 |
| | equivalents | | | |
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| | Cash and cash equivalents at Jan | 48 575 | 24 546 | 24 546 |
| | 1. | | | |
--------------------------------------------------------------------------------
| | Cash and cash equivalents at the | 43 785 | 32 466 | 48 575 |
| | end of the period | | | |
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| STATEMENT OF | | | | | | | |
| CHANGES IN | | | | | | | |
| EQUITY | | | | | | | |
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| EUR 1000 | | | | | | | |
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| | Share | Share | Reser | Fair | Accrue | Minor | Total |
| | capital | premi | ve | value | d | ity | |
| | | um | fund | reserv | profit | inter | |
| | | accou | | e | funds | ests | |
| | | nt | | | | | |
--------------------------------------------------------------------------------
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| Equity capital | 5 731 | 48 | 2 106 | 0 | 17 131 | 0 | 73 644 |
| 1.1.2007 | | 675 | | | | | |
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| Financial | | | | 149 | | | |
| instruments | | | | | | | |
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| Distribution of | | | | | -13 | | |
| dividend | | | | | 485 | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 7 836 | 30 | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Minority | | | | | | 25 | |
| interest | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity capital | 5 731 | 48 | 2 106 | 149 | 11 482 | 55 | 68 198 |
| 30.9.2007 | | 675 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity capital | 5 678 | 48 | 2 106 | 9 | 7 023 | 103 | 63 063 |
| 1.1.2006 | | 144 | | | | | |
--------------------------------------------------------------------------------
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| Subscription | 54 | 531 | | | | | |
| with the option | | | | | | | |
| rights | | | | | | | |
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| Financial | | | | -9 | | | |
| instruments | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | 22 | | |
| compensation | | | | | | | |
| plans | | | | | | | |
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| Distribution of | | | | | -6 679 | | |
| dividend | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 16 765 | -52 | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Minority | | | | | | -51 | |
| interest | | | | | | | |
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| Equity capital | 5 731 | 48 | 2 106 | 0 | 17 131 | 0 | 73 644 |
| 31.12.2006 | | 675 | | | | | |
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| QUARTERLY FINANCIAL PERFORMANCE | 7 - | 4 - | 1 - | 10 - | 7 - |
| | 9/200 | 6/2007 | 3/200 | 12/2006 | 9/2006 |
| | 7 | | 7 | | |
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| EUR 1000 | | | | | |
--------------------------------------------------------------------------------
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| Interest income | 6 111 | 5 666 | 4 601 | 4 438 | 3 702 |
--------------------------------------------------------------------------------
| Interest expense | -4 | -3 823 | -2 | -2 814 | -2 298 |
| | 300 | | 847 | | |
--------------------------------------------------------------------------------
| Net interest income | 1 811 | 1 843 | 1 754 | 1 624 | 1 405 |
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| Net fee and commission income | 7 690 | 9 602 | 8 945 | 13 388 | 5 099 |
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| Impairment of receivables | 2 | 2 | -25 | 4 | 3 |
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| Net income from financial assets | -59 | 540 | 1 368 | 929 | 468 |
| held for trading | | | | | |
--------------------------------------------------------------------------------
| Net income from | 93 | -6 | 24 | 317 | 100 |
| available-for-sale financial | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Net income from foreign exchange | 9 | 43 | 13 | 34 | 14 |
| dealing | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 888 | 1 325 | 881 | 781 | 697 |
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| Total income | 10 | 13 349 | 12 | 17 078 | 7 785 |
| | 434 | | 960 | | |
--------------------------------------------------------------------------------
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| Administrative expenses total | -6 | -8 762 | -7 | -7 889 | -4 802 |
| | 236 | | 184 | | |
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| Depreciation and write-downs on | | | | | |
| tangible | | | | | |
--------------------------------------------------------------------------------
| and intangible assets | -792 | -747 | -714 | -635 | -605 |
--------------------------------------------------------------------------------
| Other operating expenses | -562 | -541 | -527 | -545 | -486 |
--------------------------------------------------------------------------------
| Share of associated companies' | 0 | -16 | -14 | -30 | -10 |
| results | | | | | |
--------------------------------------------------------------------------------
| Total expenses | -7 | -10 | -8 | -9 099 | -5 902 |
| | 590 | 066 | 439 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net operating profit | 2 844 | 3 283 | 4 521 | 7 979 | 1 883 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -745 | -839 | -1 | -1 938 | -12 |
| | | | 199 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the financial period | 2 099 | 2 444 | 3 322 | 6 041 | 1 871 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| | Equity holders of the parent | 2 071 | 2 442 | 3 322 | 6 040 | 1 893 |
| | company | | | | | |
--------------------------------------------------------------------------------
| | Minority interests | 28 | 2 | 0 | 1 | -23 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, quarterly, | 0,06 | 0,07 | 0,10 | 0,18 | 0,05 |
| EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LEASE OBLIGATIONS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Irrevocable minimum lease obligations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating leases | 30.9.200 | 30.9.200 | 31.12.20 |
| | 7 | 6 | 06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating lease obligations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Current financial year / In less than | 117 | 82 | 433 |
| | one year (31.12.2006) | | | |
--------------------------------------------------------------------------------
| | Coming financial years / Between one | 767 | 729 | 566 |
| | and five years (31.12.2006) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total | 884 | 812 | 999 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Premises lease obligations | 30.9.200 | 30.9.200 | 31.12.20 |
| | 7 | 6 | 06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Current financial year / In less than | 345 | 345 | 1 392 |
| | one year (31.12.2006) | | | |
--------------------------------------------------------------------------------
| | Coming financial years / Between one | 3 936 | 5 315 | 3 936 |
| | and five years (31.12.2006) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total | 4 281 | 5 660 | 5 328 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial leases | 30.9.200 | 30.9.200 | 31.12.20 |
| | 7 | 6 | 06 |
--------------------------------------------------------------------------------
| | Minimum lease payments | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | In less than one year | 219 | 119 | 135 |
--------------------------------------------------------------------------------
| | Between one and five years | 260 | 203 | 203 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total | 479 | 322 | 338 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GUARANTEES AND PLEDGES | 30.9.200 | 30.9.200 | 31.12.20 |
| | 7 | 6 | 06 |
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--------------------------------------------------------------------------------
| | On own behalf | | | |
--------------------------------------------------------------------------------
| | Pledged securities | 98 263 | 81 200 | 106 766 |
--------------------------------------------------------------------------------
| | Pledged claims on credit institutions | 10 574 | 8 938 | 9 325 |
--------------------------------------------------------------------------------
| | Total | 108 836 | 90 138 | 116 091 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVES | 30.9.200 | 30.9.200 | 31.12.20 |
| | 7 | 6 | 06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Values of underlying instruments | | | |
--------------------------------------------------------------------------------
| | Interest rate derivatives | 4 906 | 8 618 | 5 441 |
--------------------------------------------------------------------------------
| | Equity derivatives | 5 007 | 2 567 | 2 817 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CAPITAL ADEQUACY | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1000 | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Own funds | | | |
--------------------------------------------------------------------------------
| | Original own funds | 32 485 | 37 523 | 30 813 |
--------------------------------------------------------------------------------
| | Additional funds, gross | 149 | 255 | 0 |
--------------------------------------------------------------------------------
| | Deductions | -183 | -66 | 0 |
--------------------------------------------------------------------------------
| Total own funds | 32 451 | 37 712 | 30 813 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital requirement for credit | 11997 | 10 667 | 8 408 |
| risks | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital requirement for market | 4579 | 6 018 | 4 636 |
| risks | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital requirement for operational | 4999 | - | - |
| risks | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital adequacy ratio (%) | 12,0 | 18,1 | 18,9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Capital adequacy ratio at 30.9.2007 is calculated by the BASEL II code. |
--------------------------------------------------------------------------------
KEY FINANCIAL INDICATORS
--------------------------------------------------------------------------------
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, % (Annualised) | 14,8 | 21,7 | 24,5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating costs to earnings | 0,71 | 0,66 | 0,61 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit per share, EUR | 0,31 | 0,42 | 0,50 |
| (Annualised) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit per share, quarterly, EUR | 0,06 | 0,05 | 0,18 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit per share, EUR (diluted) | 0,06 | 0,05 | 0,18 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit per share trailing 12m, EUR | 0,41 | 0,43 | 0,50 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share, EUR | 2,02 | 2,01 | 2,18 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity ratio, % | 8,0 | 10,0 | 11,7 |
--------------------------------------------------------------------------------
The principles of calculating financial indicators
Return on equity % (net operating profit/loss - taxes) x 100
------------------------------------------
total equity
(average of the figures for the beginning
and the end of the year)
Operating costs to earnings
administrative expenses + depreciation and
write-downs on tangible and intangible assets
+ other operating expenses
---------------------------------------------
net interest income + net commission income +
impairment of receivables + net income from financial
assets held for trading + net income from
available-for-sale
financial assets + net income from
exchange dealing + other operating income
+ share of associated companies' results (net)
Profit per share, EUR net operating profit - taxes + minority
interest
---------------------------------------------
average weighted number of shares corrected with
share issues
Profit per share, diluted, EUR
net operating profit - taxes + minority
interest
--------------------------------------------
weighted average number of shares during the
financial period (diluted)
Equity per share, EUR total equity
--------------------------------------------
adjusted average number of shares on balance
sheet date
Equity ratio, % total equity x 100
-------------------------------------------
balance sheet total
