Aktia Pankki (AKTIA) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered stable results amid market turbulence and lower interest rates, with a focus on implementing an updated strategy and the Momentum acceleration program.

• Comparable operating profit was EUR 28.7 million, down 15% year-over-year but up 1% sequentially, mainly due to lower net interest income.

• Employee net promoter score (eNPS) rose significantly after the strategy launch, supporting customer satisfaction and engagement.

• Moody's confirmed A2 rating and upgraded the outlook to stable.

• Updated long-term financial targets and dividend policy were announced, aiming for ROE ≥15%, gross AuM ≥EUR 25bn, and ≥5% annual net commission income growth by 2029.

Financial highlights

• Comparable operating profit: EUR 28.7m; net interest income: EUR 35.2m (down 10% year-over-year); net commission income: EUR 30.8m (up 2% year-over-year).

• Net income from life insurance: EUR 6.5m, down 15% year-over-year.

• Operating expenses: EUR 44.0m, up 6% year-over-year, mainly due to higher IT and personnel costs.

• Comparable ROE: 13.5% (down from 16.8% year-over-year).

• CET1 capital ratio: 13.0%, 4.4 percentage points above minimum requirement.

Outlook and guidance

• Comparable operating profit for 2025 expected to be lower than 2024 (EUR 124.5m), mainly due to lower net interest income.

• Net commission income expected to rise slightly; life insurance business anticipated to remain stable.

• Operating expenses to increase slightly due to IT investments; credit losses expected to remain moderate but subject to real estate sector uncertainty.

• Long-term targets: ROE ≥15% by 2029, gross AuM ≥EUR 25bn by 2029, net commission income growth ≥5% per year.