Pohjola Bank plc Interim Report for 1 January-30 September 2010
(Thomson Reuters ONE) -
Pohjola Bank plc
Company Release, 3 November 2010, 8.00 am
Release category: Interim report
Pohjola Bank plc Interim Report for 1 January-30 September 2010
January-September
- Year on year, consolidated earnings before tax improved to EUR 242 million
(211). Earnings include EUR 88 million (95) in impairment charges on
receivables.
- Earnings before tax at fair value amounted to EUR 273 million (424) and return
on equity at fair value stood at 11.7% (21.8).
- Banking posted earnings before tax of EUR 93 million (99), with impairment
charges on receivables affecting its earnings by EUR 89 million (84).
- Non-life Insurance's operating combined ratio stood at 88.6% (86.7). Within
Non-life Insurance, return on investments at fair value was 5.2% (9.0).
- Asset Management reported earnings of EUR 18 million (11) and assets under
management increased to EUR 35.2 billion (33.1).
- Capital gains on notes and bonds improved earnings before tax posted by the
Group Functions.
- Outlook: Consolidated earnings before tax in 2010 are expected to be at the
same level as or higher than in 2009 (previous estimate: at the same level). It
is estimated that Non-life Insurance's operating combined ratio will vary
between 89 and 92% (previous estimate: 89-93%). For more detailed information on
outlook, see "Outlook towards the year end" below.
July-September
- Consolidated earnings before tax came to EUR 103 million (87). Earnings
included EUR 27 million (41) in impairment charges on receivables and EUR 7
million in one-time amortisation on intangible assets.
- Earnings before tax at fair value were 165 million (196).
- Non-life Insurance's operating combined ratio stood at 82.8% (83.1). Within
Non-life Insurance, return on investments at fair value was 2.6% (4.3).
- Pohjola Insurance Ltd and Pohjantähti Mutual Insurance Company are planning to
merge.
President and CEO Mikael Silvennoinen:
Pohjola Group's third-quarter earnings before tax were the best ever recorded,
exceeding EUR 100 million, and January-September earnings were also better than
a year ago. Our earnings before tax grew by 15%. Net interest income continued
its growth, thanks to the strong growth reported by Corporate Banking in
particular. January-September impairment charges on receivables were almost at
the same level as the year before but were markedly lower in the third quarter
than a year ago. The third quarter saw favourable developments in capital
markets.
With greater demand for corporate loans, the loan and guarantee portfolio has
begun to grow. In line with our expectations, the trend of the rising average
corporate loan margin has come to an end and tougher competition is sending the
margin on new loans down. Slightly higher impairment charges year on year and
the normalisation of the Markets division's financial performance were offset by
the strong growth in net interest income recorded by Corporate Banking in
January-September. Earnings reported by Banking in January-September were almost
at the same level as in the previous year but markedly higher in the third
quarter than the year before.
Within Non-life Insurance, the balance on technical account remained good
despite the claims filed in the aftermath of the late summer storms. Thanks to
our reinsurance cover, they did not have any major effect on the Non-life
Insurance results. Insurance premium revenue grew and its growth among private
customers in particular remained strong throughout January-September. We had set
a strategic target in 2005 of serving 450,000 loyal customer households by the
end of 2010, but reached it already in August. As early as March, we achieved
the annual level of EUR 17 million in the revenue synergies resulting from
growth in the number of loyal customer households.
In late September, we announced that Pohjola Insurance Ltd and Pohjantähti
Mutual Insurance Company were planning to merge. The extraordinary general
meetings of these insurers will decide in early December whether the merger plan
will be rejected or approved. The purpose of the merger is to strengthen the
competitiveness in the Finnish non-life insurance market of the new entity
formed by the insurance business of Pohjola Insurance and Pohjantähti. We will
provide Pohjantähti's customers with a comprehensive range of financial services
and the best loyalty benefits and offer Pohjantähti staff with new career and
development opportunities. In addition to the existing staff, we will hire at
least another 50 people for the new service centre that will be established in
Hämeenlinna. We are confident that the merger will benefit not only customers
but also employees and owners.
Within Asset Management, assets under management increased to more than EUR 35
billion and earnings before tax also showed a marked year-on-year improvement.
Pohjola Capital Partners Ltd, a private equity firm, will be bought by its
existing management by the end of this year.
As a result of our good financial performance in January-September and a more
stable operating environment, we expect to improve our full-year earnings from
their previous year's level.
Press conference
Mikael Silvennoinen, Pohjola Bank plc's President and CEO, will present the
financial results in a press conference, Teollisuuskatu 1 b, Vallila, Helsinki,
on 3 November, starting at noon.
[HUG#1458266]
Background material Q3 2010:
http://hugin.info/142911/R/1458266/397881.pdf
Pohjola Bank plc Interim Report for 1 January-30 September 2010:
http://hugin.info/142911/R/1458266/397751.pdf
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Source: Pohjola Pankki Oyj via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 03.11.2010 - 07:02 Uhr
Sprache: Deutsch
News-ID 48333
Anzahl Zeichen: 6753
contact information:
Town:
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Kategorie:
Business News
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