Aktia Plc Interim report 1.1-30.6.2012
Cost cuts contributed to improved result
Helsinki, Finland, 2012-08-06 07:01 CEST (GLOBE NEWSWIRE) --
COST CUTS CONTRIBUTED TO IMPROVED RESULT
CEO JUSSI LAITINEN
"Aktia made a good result despite financial turbulence. Our first cost-cutting measures have led to results, and the Group’s costs have decreased. Continued turbulence in Europe and low interest rates keep up the pressure to cut the Group’s total expenditure. Despite continued savings measures, we will maintain a high level of ambition in services for our customers."
APRIL-JUNE 2012: OPERATING PROFIT EUR 18.0 (12.1) MILLION
- Group operating profit from continuing operations was EUR 18.0 (12.1) million.
- Profit for the period amounted to EUR 14.4 (8.9) million.
- Income increased by 6% to EUR 55.8 (52.6) million, of which net interest income amounted to EUR 29.7 (33.0) million.
- As a result of increased cost awareness and initiated cost reduction measures, with an ambition to cut costs by 10%, total expenses decreased by 3% to EUR 37.3 (38.5) million.
- Write-downs were cut by half, standing at EUR 1.0 (1.9) million.
- Earnings per share stood at EUR 0.21 (0.13).
JANUARY-JUNE 2012: OPERATING PROFIT EUR 32.5 (31.4) MILLION
- Group operating profit from continuing operations was EUR 32.5 (31.4) million.
- Profit for the period amounted to EUR 34.2 (23.1) million.
- Earnings per share stood at EUR 0.51 (0.33), of which earnings per share from continuing operations was EUR 0.36 (0.33).
- The capital adequacy ratio increased to 18.9 (16.2)% and the Tier 1 capital ratio to 11.7 (10.6)%. NAV was EUR 7.87 (31 December 2011: EUR 7.01).
- Net interest income from borrowing and lending operations was EUR 30.3 (30.7) million. Total net interest income fell to EUR 59.3 (67.2) million due to low interest rates and maturing interest rate derivatives.
- Write-downs on credits and other commitments decreased by 46% to EUR 2.8 (5.3) million.
- IMPROVED OUTLOOK: Operating profit for the financial period from continuing operations 2012 is expected to be on the same level as for 2011. (changed; see the complete outlook on page 12).
KEY FIGURES 4-6/ 4-6/ ∆ % 1-6/ 1-6/ ∆ % 1-3/ 2011 10-12/ (EUR 2012 2011 2012 2011 2012 2011 million) -------------------------------------------------------------------------------- Net interest 29.7 33.0 -10% 59.3 67.2 -12% 29.6 128.6 30.3 income -------------------------------------------------------------------------------- Total 55.8 52.6 6% 109.0 110.9 -2% 53.2 201.9 49.6 operating income -------------------------------------------------------------------------------- Total -37.3 -38.5 -3% -73.8 -74.1 0% -36.5 -146.6 -38.8 operating expenses -------------------------------------------------------------------------------- Operating 19.0 14.0 35% 35.4 36.6 -3% 16.4 55.3 10.8 profit before write downs on credits, continuing operations -------------------------------------------------------------------------------- Write-downs -1.0 -1.9 -51% -2.8 -5.3 -46% -1.9 -10.5 -4.1 on credits and other commitments -------------------------------------------------------------------------------- Operating 18.0 12.1 49% 32.5 31.4 4% 14.5 44.8 6.6 profit from continuing operations -------------------------------------------------------------------------------- Cost-to-inco 0.69 0.74 -7% 0.69 0.68 1% 0.68 0.73 0.78 me ratio -------------------------------------------------------------------------------- Earnings per 0.21 0.13 67% 0.51 0.33 53% 0.29 0.53 0.12 share (EPS), EUR -------------------------------------------------------------------------------- Equity per 7.88 6.43 23% 7.88 6.43 23% 7.89 7.01 7.01 share (NAV)1, EUR -------------------------------------------------------------------------------- Return on 9.8 7.6 30% 12.3 9.4 31% 14.3 7.2 6.1 equity (ROE), % -------------------------------------------------------------------------------- Capital 18.9 16.6 13% 18.9 16.6 13% 18.1 16.2 16.2 adequacy ratio1, % -------------------------------------------------------------------------------- Tier 1 11.7 10.8 9% 11.7 10.8 9% 11.3 10.6 10.6 capital ratio1, % -------------------------------------------------------------------------------- Write-downs 0.01 0.03 -67% 0.04 0.08 -50% 0.03 0.15 0.06 on credits / total credit stock, % --------------------------------------------------------------------------------
1) At the end of the period
The Interim report January-June 2012 is a translation of the original Swedish version "Delårsrapport 1.1-30.6.2012". In case of discrepancies, the Swedish version shall prevail.
Jussi Laitinen, CEO tel. +358 10 247 5000
Stefan Björkman, Deputy CEO and CFO tel. +358 10 247 6595
Anna Gabrán, IR-manager tel. +358 10 247 6501
