Aktia updates its growth strategy and long-term financial targets

Aktia Bank Plc
Stock Exchange Release
7 September 2021 at 1.15 p.m.

Aktia updates its growth strategy and long-term financial targets

Aktia’s Board of Directors has approved the company’s updated strategy and new financial targets. The new strategy update, which extends to 2025, supports Aktia’s growth objectives and guides the company towards the new vision of being “the leading wealth manager bank”. The growth strategy is built particularly on close cooperation between Aktia’s three business areas (Asset Management, Banking and Life Insurance). A strong focus on wealth management is a key part of all of the company’s business activities.

The new long-term financial objectives for 2025 are the following:

• a comparable operating profit of above EUR 120 million,
• a comparable return on equity (ROE) of above 12 per cent,
• a comparable cost-to-income ratio of under 0.60 and
• a Common Equity Tier 1 capital ratio (CET1) above 1.5 percentage points over the regulatory requirements.

Aktia’s dividend policy will remain unchanged. The goal is to pay out 60–80 per cent of the profit for the reporting period to the shareholders.

“Our updated strategy guides the Group’s direction and objectives as of the transaction in the spring. Going forward, Aktia focuses even more on holistic wealth management and I am very excited about the possibilities brought forth by the acquisition of Taaleri’s wealth management business. Our ambitious goal is to create the best wealth manager bank in Finland and seamless cooperation between different business areas is a prerequisite for success. At the same time, the importance of customer insight and an excellent customer experience is emphasised even more in our strategy”, says Mikko Ayub, CEO of Aktia.

“Since 1825, Aktia has had an important and responsible task to build wellbeing and a wealthier society from one generation to the next”, Ayub continues. “A big part of the Finns’ wealth is sitting in bank accounts. We want to continue helping people, companies and institutions to think further and to grow wealthy also in the next two hundred years. In connection with its strategy update, Aktia renews its mission, which is ‘building wealth for our customers and society’. I am particularly happy also with Aktia’s new climate objectives, according to which Aktia is aiming at reaching carbon neutrality in its investment portfolios by 2050.”

Aktia’s new strategic priorities are:

1.   Win in wealth management

Aktia’s objective is to be the first choice for private and institutional customers. A comprehensive product offering, top portfolio management expertise and high-quality private banking are at the core of Aktia’s wealth management. A central part of the development of wealth management is to successfully carry out the integration of Taaleri’s asset management business that was acquired during last spring.

2.   Growth among customers who are willing to increase their wealth

Aktia is seeking growth particularly amongst customers who want to increase their wealth and offers responsible and holistic wealth management advisory including a comprehensive selection of banking, asset management and life insurance services. More efficient cross-selling of products and services in different business areas is an essential part of the whole. In Corporate Banking, Aktia seeks growth particularly amongst medium-sized companies.

3.   Excellent customer experience

Aktia sees the customer experience as an important driver for growth. Aktia will continue to focus on customer insight and the development of service models with emphasis on holistic solutions over all business areas in order to create an excellent customer experience.

Capital Markets Day

Aktia’s arranges a virtual Capital Markets Day tomorrow, 8 September 2021 at 9.00 a.m. (EEST). More information on the strategy update will be disclosed in more detail during the Capital Markets Day. The presentations at the Capital Markets Day can be seen through a live webcast or as a recording after the event at https://aktia.videosync.fi/2021-09-08-cmd/. The presentation material is available through Aktia’s website www.aktia.com at the start of the event. The presentations are held in English.

Aktia Bank Plc

Further information:

Mikko Ayub, CEO, tel. + 358 10 247 5121
Outi Henriksson, CFO, tel. +358 10 247 6236
Lotta Borgström, Director, Investor Relations and Communications, tel. +358 10 247 6838, lotta.borgstrom@aktia.fi

Distribution:
Nasdaq Helsinki Ltd
Mass media
www.aktia.com

Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 900 people around Finland. Aktia’s assets under management (AuM) 30 June 2021 amounted to EUR 15.6 billion and the balance sheet total was EUR 11.2 billion. Aktia’s shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com