Full Year 2024 Aktia Bank Abp Earnings Call Transcript
Key Points
- Aktia Bank PLC (FRA:2A41) reported a strong fourth quarter with a comparable operating profit of EUR 28.3 million, marking an 11% increase from the previous year.
- Customer satisfaction increased significantly, with Aktia being recognized for having the most active dialogue with customers in Finland.
- Net commission income rose by 9% quarter on quarter, driven by strong performance in asset management, particularly mutual funds.
- The bank's comparable return on equity reached 15%, and the cost-to-income ratio improved to 0.56%, surpassing the long-term target of 0.60%.
- Aktia's Board of Directors proposed a higher dividend of EUR 0.82 per share for 2024, reflecting a 60% payout of the comparable profit.
- Credit loss provisions increased due to a provision in the corporate loan book, highlighting potential risks in the sector.
- Assets under management decreased slightly by the end of the year, mainly due to allocation changes among domestic institutional investors.
- The net interest income is expected to be lower in 2025 due to the changing interest rate environment, impacting operating profit.
- Aktia reported a EUR 26.4 million impairment charge related to IT systems and licenses, affecting the operating profit.
- Operating expenses are expected to increase slightly in 2025 as the bank continues to invest in IT platforms and systems.
We published our financial statement release. A stable quarter ended a strong full year. Aktia's CEO, Alexei Leptonen and CFO, Sakari Jarvella, will talk us through the results. And after the presentations, we're happy to answer your questions. If you're following us online, please feel free to write your questions in the comments field. So, let's move on. Alexei, please welcome.
Thank you, Oskar, and welcome on my behalf as well. Today, we'll focus on the fourth quarter of 2024. Of course, I know that you would like to hear more about our strategic considerations. And we as we announced this morning, we will go them through on the February 27 in an investor event
It is now my privilege to go through the fourth quarter and also a few words about the full year of 2024, together with our CFO, Sakari Jarvella.
So let us have a look at the Q4 highlights. First of all, I'm very pleased by noticing that Aktia's customer
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