Aktia Pankki Oyj

Very good morning everyone and welcome to Actia's Q2 results briefing. My name is Oskar Laimitarha, I'm the head of Actia's investor relations and I will be the moderator for this event. Earlier this morning we published our Q2 report showing stable results in line with expectations and strong focus on our Momentum program. Actia's interim CEO, Anssi Huhta and our CFO, Sakari Järvelä, will soon go through the results. I'm also very happy to announce that we will be joined by Karl Haglund, Actia's incoming CEO today. And as always, after the presentations, we are 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. Anssi, welcome on stage.

Thank you Oskar and welcome on my behalf as well. My name is Anssi Huhta, Actia's acting CEO. It's my pleasure to present our Q2 results. I will start with an overview of the quarter's highlights. After that, I will hand over to our incoming CEO, Karl Haglund, who has actually joined Actia today. Karl will give an update on our acceleration program, Momentum. A little bit later, our CFO, Sakari Järvelä, will go through the Q2 figures in more detail. So, let us have a look at the Q2. Our Q2 results are in line with the expectations. Actia's comparable operating profit announced amounted to 26.2 million euros. The top line was, in the big picture, at the same level as previous quarter. Compared to last year's net commission income, remained fairly stable. The net interest income is of course lower than last year. We are in a totally different interest environment. We are concentrating on our acceleration program, Momentum, and especially on our strategically important customer segments. For example, private and premium banking customers. The acquisition of new customers is progressing according to our targets. Of course, I'm happy that our asset under management increased to 15.9 billion during the quarter. We had both positive net subscriptions and support from the market developments. However, this is just one quarter, but it's definitely a step in the right direction. We are clearly not satisfied with the current AUM level, and we are taking actions to reach growth targets in our long-term plan. We also conducted a broad employee survey during the second quarter, and our employee net promoter score remained at a good level of 29. I'm super pleased about that. Let's have a look on the quarter in comparison with the previous ones. When we compared this quarter to earlier quarters, our comparable operating profit was about the same as in the last two quarters. However, it was 15% lower than Q2 2024. This was mostly because the interest rate has changed. In this light, we have now started the Momentum program to help us grow faster and create more value. So now, let me introduce Carl Haaglund. He was earlier a member of Actia's board and is now our new CEO. He will soon share his thoughts and views on the program. But first, Kalle, could you please tell us more about yourself and the state is yours?

Good morning, everyone. I'm pleased to be here and thank you, Hansi, for the introduction. So I have the pleasure of briefly introducing myself and then a bit over to our very exciting and important Momentum program, which was referred to before. So my name is Carl Haaglund and as mentioned, was appointed the incoming CEO this spring and taking over that task later on this fall, presumably, and have my first day at the bank today. And of course, pleased to have the opportunity to directly be here on stage to share with you some thoughts around Actia and especially the Momentum program. Just two, three words about myself coming from Veritas, one of the four pension companies in Finland, having been CEO there for the past years and also actually started my task there by driving through a very successful change program. A program that actually is very much like the program that Actia is working with right now. Also have a background with Accenture Financial Services, served there as managing director, working also with banking transformations across the Nordics and Europe. So with that background feel that we have interesting things also in my past that we can now together with colleagues, hopefully leverage to ensure success for Actia in the coming years. I'm a Master of Science of Economics from the Business School of Hanken here in Helsinki and I'm currently living here in Helsinki as well. So that's a bit about me and then more about Actia right now and on the program today. So Momentum is the name of our acceleration program. Some of you might be familiar with Momentum already from the early spring. The company launched this program late February. And in the picture now on the screen, you can see the fairly ambitious targets that we have set for the coming years. First of all, targeting growth in a segment where we are already very strong, meaning premium and private banking. This is a segment where Actia has a foothold. It's strong and it's always, of course, easier to grow in a segment where you have happy clients, happy clients that are our ambassadors and, of course, a good track record of taking well care of these clients. And this is set as a strategic target. And I'm also happy to tell you that we're already very well on track with that work. A few more words about that later on. Then we have a also very ambitious AUM target. Ansti already shared with you briefly and Koik Sakari will come back to that already later as well. Some numbers on our AUM development. Big picture is that we've had just in recent times positive development here. And that is, of course, a very good thing in relation now to our ambitious targets that you can see there with a 20 billion euro asset under management target for the coming years. With the growing AUM, we will naturally also have growing net commission income. And that is also a target that we have set with a growth on 5 percent. And then last but not least, from an owner perspective, shareholder perspective, an improved run rate will improve our ability to also remember our shareholders with good earnings every year. And we have set an ambitious run rate target. And I will share a bit around how that work is going. Here you can see this is just a sneak peek in what we're actually doing with the program just to give you a bit of an understanding of what are the concrete measures we're taking to achieve all these ambitious goals that I just briefly went through with you. These work streams you can see here are supported with around 100 initiatives on top of these where we are doing smaller and larger things to ensure that we are more efficient, that we're improving our run rate and that we're growing in the segments where we have set a target to grow. You can see naturally here work streams around the core segments, premium and private. There are work streams around SMEs and corporates. And naturally also work streams around important things like IT as we all know, banking and financial services overall are more or less an IT business today. And have taken some really important quantum leaps also this year in improving our IT environment and further of course investing in this space. Having said that, of course also being keen on keeping the IT costs on a good level to ensure an ROE level that is in line with our targets. And then I want to at this point foremost maybe even underscore the importance of the culture work that we're doing because banking, Asset management and life insurance is a people business, people to people business and we have a really awesome group of colleagues together with the management team ensuring that Actia is developing in the right direction. And a core question when looking at what is the success of different change programs, having seen them both as a CEO but also as a management consultant over the years is the fact that you have your people with you. The fact that the whole organization, everyone is working in the same direction with a high motivation. So this is core in succeeding also with momentum and I believe you're very well on track with that as well. And then finally on this just, this is probably what you're most interested in, where we stand with the work so far. And I want to just to give you a perspective. So we launched this end of February and work practically speaking started during Q2. So we have only one quarter of rolled up sleeves behind us. But already now we can see really tangible results on the right hand side. I'll comment them soon. On the left hand side you can see some highlights. I've spent a big part of my own vacation this summer getting familiarized with colleagues and work streams that we just looked at in the previous slide. And that was a very inspiring possibility to get acquainted with those on a more operative level. Of course, having served on the board of Actea before, familiar with the goal set, but now having seen it more on the floor, knowing that we're really well on track with many of the things taking into account that we just started. And then finally, we can already, and happy to share with you today, that with this quite ambitious, or let's even say very ambitious run rate improvement target of 20 million for the end of next year. Now already we can share with you that we have with the measures taken so far this year with a very cautious approach. Actually can calculate the run rate improvement of 4 million euro, which is really good. And that leaves for this year's target around 3-4 million to achieve during H2, which is naturally realistic and shows that we're well on track with this fairly new program. And we will naturally work hard during the rest of the year to ensure that we are on track. So this was a brief sneak peek on where we're going with momentum and also to say that we have previously communicated that we will every six months report to the market how we're going, how we're doing with the program. So next time we'll tell you more will be when we report our full year results next winter. And then we'll know more about where we are then, but looking very good and extremely excited to get on with this from today onwards. So thank you very much for having the possibility to present this to you today.