Aktia Bank Plc
27 October 2022 at 4.15 p.m.
Profit warning: Aktia lowers its outlook for 2022 and publishes advance information on the economic development in the third quarter
The exceptional economic situation, which has marked the whole year 2022, continued during the third quarter. The decline on the equity market and the rise in interest rates continued, and market values of different asset classes decreased across the board. Despite the increased returns from lending and lower costs than in previous quarters, Aktia's full year result will fall short of last year, as the market outlook for the rest of 2022 is still very uncertain.
Despite the positive net subscriptions, the falling equity market and the rising interest rates continued to weigh down the market values of Aktia's assets under management and the investment portfolio of the life insurance company, which led to a weaker than expected development in commission income and net income from life insurance.
The banking business has developed well during the year and the strong rise in interest rates increased Aktia's returns from lending during the third quarter. However, according to our expectations the net interest income will not yet increase significantly during 2022, as the rise of the bank's funding and hedging costs decreases the effect of the increase in return from lending on net interest income. The net impact of the rise in interest rates on net interest income is expected to be considerably positive during next year. The credit loss provisions were still at a moderate level.
New outlook for 2022
Aktia's comparable operating profit in 2022 is expected to be lower than in 2021. A key uncertainty related to the realisation of the outlook is the development of the market value of different asset classes.
Previous outlook for 2022
Aktia's comparable operating profit in 2022 is expected to be approximately at the same level as in 2021.
In 2021, Aktia's comparable operating profit was EUR 87.4 million.
Preliminary figures (unaudited):
Total operating income
Comparable total operating income
Comparable operating profit
Aktia does not provide any other advance information on its result before the publication of its interim report.
Aktia's Q3 interim report will be published on 4 November 2022 at approximately 8 a.m.
AKTIA BANK PLC
Outi Henriksson, CFO, tel. +358 10 247 6236, outi.henriksson (at) aktia.fi
Lotta Borgström, Head of Investor Relations and Communications, tel. +358 10 247 6838, lotta.borgstrom (at) aktia.fi
Nasdaq Helsinki Ltd
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 also internationally. We employ approximately 900 people around Finland. Aktia's assets under management (AuM) 30/06/2022 amounted to EUR 13.9 billion and the balance sheet total was EUR 11.9 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com