Aktia's New Strategic Plan Unveiled
Aktia Bank Plc is embarking on a transformative journey by launching an acceleration programme aimed at realizing its updated strategic plans. With a focus on long-term financial targets and an enhanced dividend policy, the bank is setting its sights on the future with optimism and determination.
Focus on Wealth Management Growth
The essence of Aktia's growth strategy is centered around becoming a distinguished wealth manager, leveraging its deep-rooted banking heritage. With a solid customer foundation and high satisfaction rates in core segments like Premium and Private Banking, Aktia exemplifies the value of personalized services combined with quality products.
From 2025 to 2029, the strategic initiative will prioritize segments including Premium and Private Banking, small and medium-sized enterprises (SMEs), and various institutions, aiming to foster growth and enhance the customer experience. The strategy also emphasizes efficient operational processes and investments in digital innovations to serve an expanding client base.
Accelerating Strategic Implementation
A programme has been launched to expedite the implementation of these strategic goals. The objective is ambitious: to achieve comparable operating profit annualized run rate improvements of about EUR 7 million by the close of 2025, with a cumulative target of around EUR 20 million by the end of 2026. Such outcomes align seamlessly with Aktia's revised financial benchmarks.
While the programme will incur one-off costs near EUR 6 million in 2025, these will primarily stem from external advisory services and should not influence the comparable operating results. The success of this programme is predicated on the financial performance it generates.
Strategic Priorities to Embrace Change
Aktia's three strategic priorities are key to achieving sustainable growth:
1. Active Wealth Management
As wealth transitions across generations, the demand for accessible, sustainable financial solutions increases. Aktia stands ready to support customers in cultivating and transferring their wealth through well-defined, long-term strategies.
2. Winning in Strategic Segments
Finland's economic growth relies heavily on bold investments and thriving communities. Aktia's proactive engagement in Premium, Private Banking, and the institutional sectors underscores its commitment to driving economic success across the board.
3. The Aktia Experience
Distinctive service is at the heart of Aktia's approach. By focusing on personal, attentive service, Aktia aims to create a unique customer experience. Dedicated teams work collaboratively to craft tailored financial plans that meet the evolving needs of clients.
Leveraging Data and Technology for Growth
A robust IT infrastructure is essential for Aktia's aspirations. Investing in technology will not only streamline growth but also enhance operational efficiency, allowing the bank to respond adeptly to market changes and customer demands.
Defining Long-term Financial Targets
Aktia has set clear financial goals for the year 2029, including:
- Achieving a comparable return on equity (ROE) exceeding 15%.
- Attaining assets under management exceeding EUR 25 billion.
- Fostering organic net commission income growth surpassing 5% annually.
- Maintaining a Common Equity Tier 1 (CET1) ratio that is 2–4 percentage points above regulatory requirements.
Updated Dividend Policy Overview
Aktia is committed to providing shareholders with a competitive total return. The revised dividend policy emphasizes a payout of approximately 60% of the reported profit to shareholders, contingent upon the Group's profitability and investment needs. Additionally, any excess capital might be distributed through bonuses or stock buy-backs to reward loyal investors.
Upcoming Investor Event Announcement
Aktia has announced an investor event scheduled for late February 2025, where CEO Aleksi Lehtonen alongside other executives will present the strategic updates and the acceleration programme. This session will be conducted in English, promoting transparency and engagement with stakeholders.
For further insights, participants can keep abreast of the developments through live event coverage and recordings accessible on Aktia's official website.
For inquiries:
Oscar Taimitarha
Director of Investor Relations
Tel: +358 40 562 2315
Email: ir (at) aktia.fi
Aktia is a prominent Finnish asset management firm and bank with a legacy of serving clients for over two centuries. Our commitment to financial wellness continues to guide our services in the digital realm and in-person across key regions. We employ about 850 professionals and our assets under management reached EUR 14.0 billion recently.
Frequently Asked Questions
What is Aktia's new strategic plan focused on?
Aktia's new strategic plan emphasizes organic growth in wealth management, targeting premium segments and enhancing customer experiences.
What are Aktia's long-term financial targets?
Aktia aims for a ROE over 15%, assets under management exceeding EUR 25 billion, and consistent annual growth in net commission income over 5% by 2029.
How does Aktia plan to enhance its services?
Through its acceleration programme, Aktia will invest in digital innovations and staff training to improve service delivery and operational efficiency.
When will the investor event take place?
The investor event is scheduled for late February 2025, where executives will discuss the new strategic updates and plans.
What is Aktia's updated dividend policy?
Aktia intends to distribute about 60% of its profit as dividends to shareholders, with possibilities for additional capital returns through extra dividends or stock buy-backs.
