Aktia Pankki (AKTIA) Investor Update summary

Strategic direction and acceleration program

• Announced a 2025–2029 strategy acceleration program to become a leading wealth manager, leveraging a strong banking heritage and focusing on premium/private banking, SMEs, and institutional segments.

• Ten focused streams with over 120 initiatives aim to drive growth, recurring operating profit, and business efficiency, targeting a €20 million run rate increase by end of 2026.

• Program is primarily growth-oriented, with most actions aimed at top-line expansion, supported by external partners for program management.

• New leadership team and cultural transformation to align incentives and drive execution, with all 850 employees included in performance-based variable remuneration schemes.

• One-off costs of €6 million expected in the first year, mainly for advisory and restructuring, treated as items affecting comparability.

Financial targets and dividend policy

• Set long-term targets for 2029: return on equity above 15%, gross AUM above €25 billion, and organic net commission income growth averaging over 5% per year.

• FY 2024: €14.0bn assets under management, €124.5m comparable operating profit, 15% return on equity.

• Interim AUM target of €20 billion by end of 2027, with gross AUM reporting to be adopted from Q1 2025.

• Dividend policy updated to distribute 60% of annual profit, with potential for extra dividends or share buybacks if excess capital exists.

• CET1 ratio targeted at 2-4 percentage points above regulatory minimum, typically operating at the higher end of this range.

Market position and operational strengths

• Strong market share in Premium and Private Banking, more than double total market share.

• High customer satisfaction and award-winning expertise in fixed income and alternative investments.

• Modernized core banking system and robust, diversified earnings mix with over 50% from commission and life insurance income.