Half Year 2024 Aktia Bank Abp Earnings Call Transcript
Key Points
- Aktia Bank PLC (FRA:2A41) reported a 21% increase in comparable operating profit for Q2, reaching EUR30.8 million.
- The bank's return on equity (ROE) was strong at 14.9% for Q2, exceeding its long-term target of 12%.
- Net interest income grew by 18% compared to the previous year, driven by margin improvements and product mix.
- Aktia Bank PLC (FRA:2A41) maintained a healthy loan-to-value ratio of 43% and a strong solvency ratio of 187.5% in its Life Insurance business.
- The bank's liquidity coverage ratio (LCR) was exceptionally high at 277%, indicating strong liquidity management.
- Comparable operating expenses increased by 5% due to higher IT spending and inflationary pressures.
- The bank experienced negative net subscriptions in its Asset Management business during Q2, although this trend reversed in June.
- There was a slight decline in lending volumes, attributed to higher amortizations and a decrease in the loan book.
- Aktia Bank PLC (FRA:2A41) faced increased competition for deposits, leading to a shift towards term deposits.
- The bank's IT costs have risen substantially, impacting the cost base despite efforts to control personnel costs.
A very good morning, everyone, and welcome to follow Aktia's half year and second quarter results presentation. My name is Oscar Taimitarha. I am Aktia's Investor Relations Director.
Earlier today, we published our results for the second quarter. Aktia's CEO, Aleksi Lehtonen, now in this role for the first time, and the CFO, Outi Henriksson, will soon walk us through the results.
(Event Instructions)
So let's move on. Aleksi, please welcome.
Thank you, Oscar. It's a great pleasure to be here as the new CEO of Aktia and present our fresh Q2 results that came out this morning. My name is Aleksi Lehtonen, and I'm happy to go through this result together with our CFO, Outi Henriksson, in few moments.
But first, before delving into the details of our results, let me summarize my key takeaways after the first two months as a CEO. First and foremost, I'm very glad to notice
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