Twofold operating environment in 2022

The year 2022 was exceptionally grim for many. When society finally opened up after the coronavirus pandemic, the Russian invasion of Ukraine in February made Europe tremble, including Finland. The feeling of security was shaken.

The Russian attack on Ukraine had global economic repercussions, as it increased energy prices and accelerated inflation, weakening consumer purchasing power. According to Statistics Finland, inflation in Finland was 9.1 percent in December, which is the highest figure since 1983. Furthermore, the central banks changed their direction, and the trend shifted rapidly from a loose interest rate stimulus to a tightened monetary policy. Investors were forced to hold on to their hats as interest rates rose sharply and companies' market values melted away right in front of their eyes. Even at the Helsinki Stock Exchange, the general index fell by more than 15 percent.

For Aktia, the direct effects of the war were relatively small. Our credit portfolio did not have any significant direct risks in the crisis area, and Aktia's own funds did not have any direct investments in Russia. In March, we also decided to suspend all outgoing and incoming payments to Russia and Belarus for the time being.

The determined implementation of the wealth manager bank strategy continued

In 2022, market uncertainty made the operating environment twofold for Aktia: the banking business was strengthened, and rising interest rates supported the growth of interest income. The declining stock market, on the other hand, weighed the assets managed by the fund managers, and rising interest rates burdened the value changes in the investment portfolio of the life insurance business. The operating environment had a major impact on performance development, and the comparable operating profit was clearly lower than the previous year.

Despite the difficult market environment, it was important for Aktia to continue the determined implementation of its strategy. The international distribution of Aktia’s Emerging Market fixed income funds (EMD) expanded, and our funds are now sold in 17 different countries. In addition to the EMD funds, we also expanded international sales to other products, one example being the dark green UI-Aktia Sustainable Corporate Bond Fund in accordance with Article 9 of the EU Sustainable Finance Disclosure Regulation, which was launched in the autumn. The fund reached EUR 100 million AuM in December and is also sold to foreign investors.

Last year, we made a record number of Wealth Plans for our customers. The Wealth Plan helps our customers see the opportunities offered by their own finances, increase their wealth and prepare for risks. The launch of the new Finnair Visa credit card in cooperation with Finnair in early June reflected our investment in consumer financing. The demand for the Finnair Visa credit card has been strong since then, and the cooperation has brought an important number of new customers to the core of our strategy. At the end of the year, Aktia also launched the Aktia Avara investment insurance. The Aktia Avara investment insurance was developed through group-wide cooperation and provides a flexible and efficient way of investing in the long term.

Aktia updated its sustainability programme

Aktia updated its sustainability programme at the end of 2022. We want to be a reliable partner and systematically develop the sustainability of our own activities and of our entire sector. Combating climate change is important to us, and our climate strategy aims to achieve carbon neutrality in investment portfolios by 2050. In lending, too, we aim to reduce carbon emissions and exposure. We aim to operate on a long-term basis and to develop and expand our practices, including the impact assessment. The indicators of our sustainability programme have been reported as part of the annual review in connection with the non-financial report of the Board of Directors’ report.

I would like to express my thanks regarding 2022 to both Aktia's competent personnel, our customers, and other stakeholders. In 2022, Aktia dealt with the same uncertainty in the operating environment as everyone else, but our message to customers remained the same: only by thinking on a long-term basis, beyond these difficult times, can it be possible to prosper systematically, and even benefit from market turbulence. Our task as a wealth manager bank is to help both individuals and Finland to prosper, because the prosperity of the people and, consequently, of society benefits us all.