Aktia Bank Plc
Stock Exchange Release
7 May 2025 at 8.00 a.m.
Aktia Bank Plc's Interim Report January-March 2025: Stable start to the year - focus on the implementation of the updated strategy
Aktia delivered a stable result compared to the previous quarter. The focus in the first quarter was on the launch of the acceleration programme to strengthen the implementation of the revised strategy with associated updated financial targets. Aktia is well-positioned and strongly focused on long-term value creation, even though the markets are turbulent.
The quarter in short
- Comparable operating profit: EUR 28.7 million, 15% lower than last year (33.9) mainly due to changes in the interest rate environment.
- Comparable return on equity (ROE): 13.5% (16.8%).
- Net commission income: 2% higher than last year thanks to good development in the card business.
- Net interest income: Decreased as expected and was 10% lower than last year due to lower market rates.
- Net income from life insurance: Stable development, although the insurance service result was lower than in the strong corresponding quarter last year.
- Comparable operating expenses: Good cost control despite continued investments in IT.
- Credit losses: Increased slightly compared to last year, which reflects the current market situation.
- Assets under management: Decreased slightly during the quarter due to net redemptions and a decline in market values. Positive net subscriptions in the last month of the quarter.
- Rating: Moody's confirmed Aktia's A2 rating and raised the outlook to stable.
- Share of assets invested in Aktia's funds, that is invested in funds classified under SFDR Article 8/9 increased from 98.1% to 98.2%.
- Common Equity Tier 1 capital ratio (CET1): Increased mainly as a result of the new CRR3 Capital Requirement Regulation. In the third quarter Aktia intends to switch from the F-IRB approach to the standardised approach for corporate exposures, which will have a negative impact on the CET1 ratio.
Outlook 2025 (unchanged)
Aktia's comparable operating profit for 2025 is expected to be lower than the comparable operating profit for 2024, which amounted to EUR 124.5 million.
(Published: 12 February 2025)
The outlook has been prepared based on the following assumptions:
- Due to the lower interest rate level, the net interest income is expected to be lower than in 2024.
- The net commission income is expected to be slightly higher than in 2024. However, market uncertainty may have a negative impact on the net commission income.
- The life insurance business is expected to develop steadily. However, the result may be affected by changes in market values.
- Operating expenses are expected to increase slightly, given the continued investments in IT and the development of the general cost level.
- Credit losses are expected to remain at a moderate level. However, the uncertainty in the Finnish real estate sector may affect the development of impairments and expected credit losses.
Aleksi Lehtonen, CEO:
Aktia's first quarter of 2025 was strongly marked by the start of a new strategy period. Aktia launched an updated strategic plan with new long-term financial targets. It is gratifying and inspiring to see how a clear direction and ambitious goals energise the entire organisation, which is clearly visible in the employee survey we conducted at the end of the quarter: the employee net promoter score (eNPS) rose significantly from 19 to 32. Such a development tends to go hand in hand with higher customer satisfaction, and this connection is central to our success.
The comparable operating profit of the quarter was lower than last year, which is mainly explained by the changed interest rate environment, which negatively affected the net interest income. Net commission income was somewhat higher than last year mainly due to good development within the card business and higher income from fixed income funds. Compared to the previous quarter, the result was stable and the comparable return on equity increased.
Investment market turbulence continued, testing investors' patience. The Trump administration's decisions lead to significant volatility and pose a major brake on the economy. We also saw movements - in both directions - in assets under management, which at the end of the quarter were slightly lower than at year-end. We have maintained and we continue to maintain an active dialogue with our customers. This activity and dialogue are central to our way of working, and we know that it is especially important and appreciated in demanding situations and times of unrest.
Plan for value creation and acceleration programme
At our well-attended investor event on 27 February, we announced our updated strategic plan, our new long-term financial targets and our updated dividend policy. Our overall objective is to become a leading wealth manager empowered by a strong banking heritage, and we have already initiated several measures to strengthen our wealth management business. To ensure an effective implementation of our value creation plan, we launched an acceleration programme called Momentum. Through this concrete programme, we will ensure that we can show measurable results already in the next two years.
The reception among investors has been positive and I have had the pleasure of discussing our plans with both current and hopefully future investors. Together with the leadership team, we have also met all our employees and had many inspiring discussions. To succeed, the entire organisation and all employees must be fully engaged. Therefore, I am particularly pleased with the strong confidence shown by this quarter's employee survey. This is of key importance to what we have called The Aktia Experience, i.e. the tightly linked combination of the customer and employee experience.
Ambitious financial targets
In connection with the launch of our strategic plan and our acceleration programme, we also announced our new long-term financial targets. By implementing the plan laid out, we aim to achieve a comparable return on equity of at least 15%, gross assets under management of at least EUR 25 billion and an annual growth in net commission income of at least 5% by the end of 2029. We also announced that, according to our new capital policy, we aim to maintain a Common Equity Tier 1 capital ratio between 2 and 4 percentage points above the regulatory requirement. Our new dividend policy also opens up the possibility of extra dividends or share buybacks in a situation where we assess that we have surplus capital.
With confidence towards the future
Now that we have entered the new strategy period, I am witnessing a high level of energy within the management and the entire organisation, a positive atmosphere among investors and a great interest among our customers. This is an excellent starting point for future value creation. I am highly confident about Aktia's future, and I welcome all current and future Aktia employees, customers and investors to join us on our journey.
Key Figures
| (EUR million) | Q1/2025 | Q1/2024 | ? % | Q4/2024 | ? % | Q3/2024 | Q2/2024 | Jan-Dec/2024 |
| Net interest income | 35.2 | 39.1 | -10% | 38.1 | -8% | 36.1 | 38.8 | 152.0 |
| Net commission income | 30.8 | 30.1 | 2% | 32.5 | -5% | 30.9 | 30.8 | 124.3 |
| Net income from life insurance | 6.5 | 7.7 | -15% | 6.3 | 4% | 8.9 | 7.4 | 30.2 |
| Total operating income | 73.5 | 77.3 | -5% | 78.7 | -7% | 76.1 | 76.7 | 308.8 |
| Operating expenses | -44.0 | -41.4 | 6% | -49.3 | -11% | -43.1 | -44.8 | -178.6 |
| Impairment of tangible and intangible assets | - | - | - | -25.0 | -100% | - | - | -25.0 |
| Impairment of credits and other commitments | -2.9 | -2.7 | 6% | -4.3 | -34% | -1.8 | -1.8 | -10.6 |
| Operating profit | 26.6 | 33.3 | -20% | 0.1 | - | 31.2 | 30.1 | 94.6 |
| Comparable operating income1 | 73.5 | 77.3 | -5% | 78.7 | -7% | 76.1 | 76.7 | 308.8 |
| Comparable operating expenses1 | -41.9 | -40.7 | 3% | -46.1 | -9% | -42.8 | -44.1 | -173.8 |
| Comparable operating profit1 | 28.7 | 33.9 | -15% | 28.3 | 1% | 31.5 | 30.8 | 124.5 |
| Cost-to-income ratio | 0.60 | 0.54 | 12% | 0.63 | -4% | 0.57 | 0.58 | 0.58 |
| Comparable cost-to-income ratio1 | 0.57 | 0.53 | 8% | 0.59 | -3% | 0.56 | 0.57 | 0.56 |
| Earnings per share (EPS), EUR | 0.30 | 0.38 | -21% | 0.00 | - | 0.34 | 0.33 | 1.04 |
| Comparable earnings per share (EPS), EUR1 | 0.32 | 0.38 | -16% | 0.31 | 5% | 0.34 | 0.34 | 1.37 |
| Return on equity (ROE), % | 12.5 | 16.5 | -4.0* | -0.1 | 12.6* | 14.9 | 14.5 | 11.4 |
| Comparable return on equity (ROE), %1 | 13.5 | 16.8 | -3.3* | 13.1 | 0.3* | 15.0 | 14.9 | 15.0 |
| Common Equity Tier 1 capital ratio (CET1), %2 | 13.0 | 11.4 | 1.6* | 12.0 | 1.1* | 11.9 | 11.5 | 12.0 |
| Dividend per share, EUR | 0.82 | |||||||
| Payout ratio, % | 79 |
1) Alternative performance measures
2) At the end of the period
* The change is calculated in percentage points
Briefing for analysts, investors and media
Aktia's results briefing for analysts, investors and media will be held in English on Wednesday 7 May 2025 at 10.30 a.m. Aktia's CEO Aleksi Lehtonen and CFO Sakari Järvelä will present the results.
The briefing can be viewed live as a webcast or as a recording after the event at https://aktia.events.inderes.com/q1-2025. Questions can be submitted in writing during the live webcast.
Aktia Bank Plc
For more information:
Oscar Taimitarha, Director, Investor Relations, Tel. +358 40 562 2315, Email ir (at) aktia.fi
Distribution:
Nasdaq Helsinki Ltd
Mass media
www.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 850 people around Finland. Aktia's gross assets under management (AuM) on 31 March 2025 amounted to EUR 15.7 billion, and the balance sheet total was EUR 12.0 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.
