Aktia Pankki (AKTIA) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong performance with a 21% rise in comparable operating profit to €30.8m, improved results across all business areas, and recognition for portfolio management excellence.

• Strategic partnership with Swedbank initiated, focusing on payments, leasing, and hire purchase, and launch of a new private debt fund targeting €100m.

• CEO transition completed in June 2024, with a group strategy review and new strategic priorities.

• 98% of assets under management invested in Article 8/9 funds, reflecting a strong sustainability focus and SBTi commitment.

• Correction of a technical error in 2023 financials reduced retained earnings by €3.1m; impact included in H1 2024.

Financial highlights

• Total operating income for Q2 2024 was €76.7m (+11% y/y); net interest income grew 18% to €38.8m; net commission income increased to €30.8m.

• Comparable operating profit rose 21% y/y to €30.8m; EPS up 18% to €0.33; comparable EPS up 22% to €0.34.

• Return on equity (ROE) improved to 14.9% (comparable); cost-to-income ratio improved to 0.57.

• Assets under management reached €14.1bn, supported by favorable market development.

• Credit loss reservations remained moderate at eight basis points, though provisions increased 101% y/y for H1.

Outlook and guidance

• 2024 comparable operating profit is expected to exceed €104.8m (2023 level), independent of restated 2023 figures.

• Net interest and commission income anticipated to be higher than 2023, with stable life insurance business.

• Operating expenses projected to remain flat, with higher IT costs offset by lower stability contribution.

• Credit loss provisions expected to rise slightly due to market conditions.