Capital adequacy

Q3 2025

Aktia Bank Group (Aktia Bank Plc and all its subsidiaries except Aktia Life Insurance) applies internal risk classification (IRB) for the calculation of capital requirement for certain retail exposures. The standardised approach is used for other exposures.

The Bank Group’s Common Equity Tier 1 (CET1) capital ratio increased to 13.0% (12.0%), which is 4.4 percentage points above the minimum requirement. The improvement is explained by a decrease in risk-weighted assets, while Common Equity Tier 1 capital increased.

The CET1 capital increased during the period. This was mainly due to a decrease in the regulatory deductions from Common Equity Tier 1 capital, and in particular due to the fact that Aktia discontinued the use of the F-IRB method for risk weighting during the third quarter. Changes in the valuation of intangible assets and an increase in the fund at fair value also had a positive impact on CET1 capital.

Risk-weighted assets decreased after CRR3 entered into force at the year-end. The decrease is mainly attributable to the loan book of corporate and private customers, as well as operational risks. During the third quarter, the risk weighting method of the corporate loan book shifted largely from the F-IRB method to the standardised approach, which in turn increased risk-weighted assets.