eQ CORPORATION STOCK EXCHANGE RELEASE July 26, 2007 AT 8.30
eQ's INTERIM REPORT 1-6/2007
(Translation of Finnish language original)
January - June, H1:
Net revenues EUR 26.3 million (EUR 23.4 million)
Operating profit EUR 7.8 million (EUR 8.9 million)
Earnings per share EUR 0.17 (EUR 0.26)
Return on equity 16.5 per cent, annualised
April - June, Q2:
Net revenues EUR 13.3 million (EUR 11.6 million)
Operating profit EUR 3.3 million (EUR 4.3 million)
Earnings per share EUR 0.07 (0.13)
eQ Group's net revenues continued to increase during January - June 2007.
Due to a strong increase of net revenues in Asset management (+59 %) and in
Hosting (+42 %) services, the consolidated net revenues of eQ increased by 12
per cent compared to the previous year.
Straumur-Burdaras Investment Bank hf. (hereinafter Straumur) acquired on May
22nd a majority of the sharecapital of eQ. eQ became thus a subsidiary to
Straumur. Straumur subsequently launched a public tender offer for all eQ
shares. At the expiry of the public tender offer on July 3, Straumur held 96 %
of all outstanding eQ shares.
eQ GROUP, KEY FIGURES
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| | | | | | | |
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| (EUR 1 000) | | | Change | | | Change |
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| | Q2/07 | Q2/06 | y-on-y | 1-6/07 | 1-6/06 | y-on-y |
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| Net revenues from | | | | | | |
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| financial operations | 1 843 | 1 271 | 45 % | 3 597 | 2 283 | 58 % |
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| Net commission | 9 602 | 9 600 | 0 % | 18 548 | 18 746 | -1 % |
| income | | | | | | |
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| Other income | 1 904 | 743 | 156 % | 4 165 | 2 392 | 74 % |
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| Net revenues in | 13 | 11 | 15 % | 26 309 | 23 421 | 12 % |
| total | 349 | 615 | | | | |
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| Operating profit | 3 283 | 4 268 | -23 % | 7 804 | 8 858 | -12 % |
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| Earnings/share EUR | 0.07 | 0.13 | -46 % | 0.17 | 0.26 | -35 % |
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Operating profit for business areas
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| (EUR 1 000) | | | Change | | | Change |
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| | Q2/07 | Q2/06 | y-on-y | 1-6/07 | 1-6/06 | y-on-y |
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| Securities Brokerage | -137 | 890 | -115 % | 1 864 | 2 224 | -16 % |
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| Asset management | 2 285 | 960 | 138 % | 3 980 | 2 782 | 43 % |
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| Corporate Finance | 1 091 | 2 592 | -58 % | 1 891 | 3 931 | -52 % |
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| Hosting | 44 | -174 | 125 % | 69 | -79 | 187 % |
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OPERATING ENVIRONMENT
The stock markets continued to perform strongly during the second quarter with
the Helsinki Stock Exchange general index up by 17 % from the beginning of the
year until June 30. Despite the strong performance of the equity market and the
continuing rise in interest rates, the Finnish mutual funds market has seen a
small net outflow of money from mutual funds investing in equities, while the
the fixed income funds have experienced substantial inflows. The overall mutual
funds market grew substantially as a factor of value increase and net inflow of
money. The M&A market continued to be very active during the first half of 2007.
INCOME AND PROFIT
eQ Group's net revenues for the first six months increased by 12 % compared to
the corresponding period of 2006. The growth was especially strong in Asset
management (+59 %) and Hosting (+42 %) services. The increase in net revenues is
due to the increased number of customers and the increase in assets under
management. The net revenues of Securities brokerage services remained on the
same level as in the previous year and the revenues of Corporate finance were,
as expected, lower than in January - June 2006.
eQ Group's costs January - June 2007 increased by 37 per cent compared to the
previous year. The increase is due to investments in growth in all eQ's business
areas. In addition the acquisition of the majority of eQ shares and the
subsequent public tender offer by Straumur resulted in extraordinary costs of
some 0.7 million in the second quarter. The combined effect of these increases
in costs resulted in a operating profit totalling EUR 7.8 million, a decrease by
12 per cent compared to 2006.
At the end of June 2007 eQ had approximately 49 300 customers, which is 10 per
cent more compared to the previous year.
The group balance sheet is still strong: the shareholders' equity at the end of
June was EUR 66.1 million and the consolidated capital adequacy ratio was 12.8
%.
BUSINESSES
Securities Brokerage services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q2/07 | Q2/06 | y-on-y | 1-6/07 | 1-6/06 | y-on-y |
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| Net revenues | 3 546 | 4 349 | -18 % | 9 181 | 9 421 | -3 % |
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| Operating profit | -137 | 890 | -115 % | 1 864 | 2 224 | -16 % |
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| Personnel | 38 | 36 | 6 % | 38 | 36 | 6 % |
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The net revenues of securities brokerage services were EUR 9.2 million, roughly
at the same level as in the previous year. The second quarter revenue was below
Q2 of last year as a factor of lower revenue for the proprietary trading and
slower customer activity. Coupled with the extraordinary costs in the second
quarter the operating profit for the period was EUR 1.9 million, 16 % less than
during the first half of 2006.
eQ's share of trades executed on the Helsinki Stock Exchange in January - June
was 4.7 % and the share of the euro volume 3.5 %. eQ's market share during the
second quarter was 4.2 % (trades) and 3.4 % (volume).
Asset management services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q2/07 | Q2/06 | y-on-y | 1-6/07 | 1-6/06 | y-on-y |
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| Net revenues | 6 608 | 3 233 | 104 % | 11 741 | 7 371 | 59 % |
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| Operating profit | 2 285 | 960 | 138 % | 3 980 | 2 782 | 43 % |
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| Personnel | 44 | 27 | 63 % | 44 | 27 | 63 % |
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| Assets under | 2 048 | 837 | 145 % | 2 048 | 837 | 145 % |
| management, meur | | | | | | |
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| Deposits, meur | 530 | 416 | 27 % | 530 | 416 | 27 % |
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| Loans, meur | 56 | 46 | 22 % | 56 | 46 | 22 % |
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eQ Bank's assets under management include deposits, discretionary asset
management and mutual funds. Discretionary asset management and mutual funds
include partly the same funds.
The net revenues of asset management services had a strong increase to 11.7
million, an increase of approximately 59 per cent compared to the previous year.
The operating profit was EUR 4.0 million, an increase of 43%. eQ's assets under
management (including deposits) increased by 145 per cent compared to the
previous year totaling EUR 2.0 billion.
In May 2007 eQ launched the mutual fund, eQ Clean Energy, investing globally in
companies that are expected to benefit from the global trend towards production
of cleaner energy. The fund was the first of its kind in Finland. The fund's
investment policy has been developed in co-operation with Pöyry energy
consultation.
Corporate Finance services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q2/07 | Q2/06 | y-on-y | 1-6/07 | 1-6/06 | y-on-y |
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| Net revenues | 1 896 | 3 365 | -44 % | 3 262 | 5 247 | -38 % |
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| Operating profit | 1 091 | 2 592 | -58 % | 1 891 | 3 931 | -52 % |
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| Personnel | 15 | 13 | 15 % | 15 | 13 | 15 % |
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eQ Bank´s Advium Corporate Finance unit has acted as a financial advisor in nine
transactions during January - June 2007.
Advium acted as a financial advisor to Northern European Properties Limited in
connection with a divestment of seven properties to a consortium of Samson
Properties, Ajanta and The Royal Bank of Scotland for a total consideration of
EUR 187 million. Further, Advium acted as the financial advisor to Fiskars in
connection with the acquisition of Iittala Group for a total consideration of
approximately EUR 230 million. Advium also acted as an advisor to Evox Rifa
Group and provided a fairness opinion to the Board of Directors of the company
in connection with the public tender offer for the shares in the company made by
Kemet Corporation.
The personnel in Advium has grown and the number of professionals at the end of
June amounted to 15.
Due to the fact that success fees play an important role in the corporate
finance business, the unit´s performance can fluctuate significantly between
quarters.
Hosting services
Key figures
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| (EUR 1 000) | | | Change | | | Change |
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| | Q2/07 | Q2/06 | y-on-y | 1-6/07 | 1-6/06 | y-on-y |
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| Net revenues | 1 614 | 1 005 | 61 % | 2 744 | 1 919 | 42 % |
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| External revenues | 1 299 | 668 | 94 % | 2 125 | 1 383 | 54 % |
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| Internal revenues | 315 | 337 | -7 % | 619 | 546 | 13 % |
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| Operating profit | 44 | -174 | 125 % | 69 | -79 | 187 % |
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| Personnel | 18 | 17 | 6 % | 18 | 17 | 6 % |
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The net revenues of hosting services during January - June 2007 had an increase
of 42 per cent totalling EUR 2.7 million. The growth in net revenues was mainly
due to successful new customer business. The major investment in the second data
centre in 2006 still weighs on the profitability of Xenetic.
INVESTMENTS
eQ Group's investments in the first half of 2007 totalled EUR 1.4 million, of
which EUR 0.6 million were directed to tangible assets (EUR 2.0 million of which
EUR 1.8 million were directed to tangible assets in 1-6/2006).
SOLIDITY
At the end of June 2007 the group capital adequacy ratio was 12.8%.
The profit for the first quarter has not been included in Tier 1 own funds.
PERSONNEL
At the end of June eQ Group had 169 employees (150). The head count consists of
staff working permanently or for a fixed term of at least six months.
STRAUMUR-BURDARAS INVESTMENT BANK HF. ACQUIRED MAJORITY STAKE IN THE eQ
CORPORATION
In May 2007, Straumur-Burdaras Investment Bank hf. acquired the majority in eQ
Corporation and decided to launch a mandatory tender offer for all of the shares
and option rights in eQ. The offer price was EUR 7.60 for each share and EUR
5.40 for each option right in eQ. The acceptance period for the tender offer
commenced on June 11, 2007 and expired on July 3, 2007.
FLAGGING NOTIFICATIONS
On 22 May, 2007 eQ Corporation received notifications in accordance with chapter
2 section 10 of the Securities Markets Act, in which Straumur-Burdaras
Investment Bank hf., Fennogens Investments S.A., Notalar Oy and ANHA Benelux
SPRL informed of changes in their respective holdings in eQ Corporation:
Straumur Burdaras Investment Bank hf.'s holding of shares and votes in eQ
Corporation exceeded fifty (50) per cent. Fennogens Investments S.A.'s, Notalar
Oy's, ANHA Benelux SPRL's holding had fallen below (5) per cent of all shares
and votes in eQ Corporation. Straumur-Burdaras Investment Bank hf. holds 20 920
740 shares in eQ Corporation, which equals approximately 62.05 per cent of all
shares and votes in eQ Corporation. Fennogens Investments S.A., Notalar Oy and
ANHA Benelux SPRL do not hold any shares in eQ Corporation.
On May 23, 2007 eQ Corporation received a notification according to the chapter
2 section 10 of the Securities Markets Act, in which Straumur-Burdaras
Investment Bank hf. has by share trades dated 22 May 2007 acquired a further
9.91 % of the shares in eQ. As a result of the trades, Straumur-Burdaras'
holding in eQ has exceeded 66.7 of the share capital and voting rights in eQ
Corporation.
SHARES AND SHARE CAPITAL
At the end of June 2007 the consolidated shareholders' equity was EUR 66.1
million and the share capital was EUR 5 731 286.33 divided over 33 713 449
shares. The weighted average number of shares during the review period was
33 713 449. Equity per share was EUR 1.96. eQ Corporation had 6 216 shareholders
on June 30, 2007.
During the first half of 2007 the highest share price (quoted) on the Helsinki
Stock Exchange was EUR 7.61 and the lowest EUR 4.68. At the end of the period
eQ's share price was EUR 7.61 and the market capitalisation EUR 256.6 million. A
total amount of 38 961 361 shares, representing 115 % of the company's shares
and corresponding to a turnover of EUR 282 565 651 were traded during the
period.
OPTION PROGRAMMES
The Company had one on-going option programme during the period: Option
programme 2004. The option programme 2004 is divided into two series. A total
of 480 000 options have been granted based on the option programme 2004A-series
(maximum dilution effect 1.4 %). Any options based on the B-series have not been
granted. The subscription period for the shares with the option programme
of 2004 began on January 1, 2007 and will end on March 31, 2008. The
subscription price for one 2004A-series option is EUR 2.20 per share.
RISKS
eQ Corporation's main risks are classified as credit risks, market risks,
interest rate risks and operational risks.
eQ Bank´s credit risk is controlled through measures such as counterparty
limits and well-defined credit granting process. Also, the bank primarily
grants credit only against collateral. During the reporting period there were no
credit losses.
Market risk refers to the risk of loss resulting from changes in interest rates,
equity prices or exchange rates. Market risks are managed by trading limits,
which are supervised by independent risk management unit on daily basis.
Interest rate risk within eQ Bank's customer business is minor because most
deposits and lending have equal interest rate bindings. Interest rate risk is
monitored through sensitivity of net interest income to changes in the interest
rate level. Treasury unit is responsible for ensuring corporations liquidity and
banks funding and also for the management of the credit risk, currency risk and
counterpart risk. The requirements for liquidity are monitored on a daily basis.
Operational risks refer to the risk of loss resulting from factors such as
inadequate or failed internal processes, personnel, systems or external factors.
Operational risks are managed by measures such as developing internal processes,
ensuring sufficient guidance and using collateral and insurance policies.
Contingency plans have been put in place to cope with major disturbances to
operations. The earnings impact of operational risks during the period has been
minor.
OUTLOOK
The revenues of the eQ Group as well as the profitability are very sensitive to
the development of the equity and fixed income markets. In corporate finance
business the revenues are highly dependent on receiving success fees as well as
the timing of those. Due to these reasons the financial performance of eQ Group
may fluctuate significantly between quarters.
The third quarter is traditionally seasonally slightly weaker than the other
quarters. Provided that the positive trend in the financial markets will
continue during Q3, the company is well positioned to continue its growth and to
deliver an operating profit exceeding the level of last year's third quarter.
POST BALANCE SHEET DATE EVENTS
The final result of Straumur's public tender offer
The public tender offer by Straumur-Burdaras Investment Bank hf for all issued
and outstanding shares and option rights in eQ Corporation terminated on July 3,
2007.
The final result of the offer has been confirmed. Straumur-Burdaras' holding in
eQ after termination of the tender offer is a total of 32 410 347 shares
representing about 96.13 per cent of shares issued by eQ and of votes attached
to them.
Extraordinary General Meeting
An Extraordinary General Meeting of eQ Corporation was held on June 25, 2007.
The meeting elected a new Board of Directors for the company for a term, which
lasts until the end of the next Annual General Meeting. The Extraordinary
General meeting re-elected Mr Antti Pankakoski and Mr Petteri Walldén as members
of the Board of Directors and elected Mr William Fall and Mr Antti Mäkinen as
new members of the Board.
The Board of Directors elected William Fall as Chairman of the Board.
eQ Corporation
The Board
For further information:
Antti Mäkinen tel. +358 9 6817 8686
CEO mobile +358 50 561 1501
eQ Corporation e-mail antti.makinen@eQ.fi
Distribution:
Helsinki Stock Exchange
Main media
www.eQ.fi
This second Interim Financial Report of the year 2007 does not include the
information of related parties according to IAS 34 standard because there has
not been any essential changes compared to the financial statements of 2006.
Otherwise the report has been prepared according to the IAS standard 34 (interim
reports). The interim report has been prepared under the same principles as the
Financial Statements of 2006. The report is unaudited.
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| CONSOLIDATED BALANCE SHEET (IFRS) | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| EUR 1000 | | | |
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| ASSETS | | | |
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| Liquid assets | 48 | 30 | 40 |
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| Claims on credit institutions | 97 929 | 144 246 | 91 508 |
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| Financial assets held for trading | 238 345 | 95 994 | 189 188 |
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| Available-for-sale financial assets | 195 768 | 179 687 | 168 216 |
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| Claims on the public and public | 56 595 | 43 283 | 54 866 |
| sector entities | | | |
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| Investment in associates | 0 | 70 | 30 |
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| Intangible assets | 27 458 | 19 157 | 27 745 |
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| Tangible assets | 4 865 | 4 371 | 4 699 |
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| Other assets | 127 477 | 156 223 | 89 198 |
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| Deferred tax assets | 722 | 3 619 | 1 661 |
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| TOTAL ASSETS | 749 207 | 646 680 | 627 150 |
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| EQUITY AND LIABILITIES | | | |
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| LIABILITIES | | | |
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| Liabilities to credit institutions | 83 | 753 | 90 |
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| Liabilities to the public and public | 527 696 | 415 500 | 435 833 |
| sector entities | | | |
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| Derivative financial instruments | | | |
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| and other liabilities held for | 20 609 | 9 078 | 15 571 |
| trading | | | |
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| Other liabilities | 133 727 | 154 732 | 101 003 |
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| Tax liabilities | | 0 | 15 |
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| Deferred tax liabilities | 1 019 | 772 | 993 |
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| TOTAL LIABILITIES | 683 134 | 580 835 | 553 505 |
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| EQUITY CAPITAL | | | |
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| Share capital | 5 731 | 5 681 | 5 731 |
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| Share issue | 0 | 552 | 0 |
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| Share premium account | 48 675 | 48 174 | 48 675 |
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| Reserve fund | 2 106 | 2 106 | 2 106 |
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| Fair value reserve | 123 | 73 | 0 |
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| Retained earnings | 9 411 | 9 187 | 17 131 |
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| Total equity attributable to equity | 66 046 | 65 773 | 73 644 |
| holders of the parent company | | | |
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| Minority interest | 27 | 73 | 0 |
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| TOTAL EQUITY | 66 073 | 65 846 | 73 644 |
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| TOTAL EQUITY AND LIABILITIES | 749 207 | 646 680 | 627 150 |
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| OFF-BALANCE SHEET COMMITMENTS | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| | Credit limits not in use | 76 481 | 52 433 | 59 023 |
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| CONSOLIDATED PROFIT AND LOSS | 1.1. - | 1.1. - | 1.1. - |
| ACCOUNT (IFRS) | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| EUR 1000 | | | |
--------------------------------------------------------------------------------
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| Interest income | 10 267 | 5 934 | 14 075 |
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| Interest expense | -6 670 | -3 651 | -8 762 |
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| Net interest income | 3 597 | 2 283 | 5 312 |
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| Fee and commission income | 23 431 | 22 408 | 43 293 |
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| Fee and commission expense | -4 884 | -3 662 | -6 059 |
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| Net fee and commission income | 18 547 | 18 747 | 37 233 |
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| Impairment of receivables | -23 | 3 | 10 |
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| Net income from financial assets | 1 908 | 995 | 2 393 |
| held for trading | | | |
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| Net income from | 18 | -41 | 377 |
| available-for-sale financial | | | |
| assets | | | |
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| Net income from foreign exchange | 56 | 11 | 59 |
| dealing | | | |
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| Other operating income | 2 206 | 1 423 | 2 901 |
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| Total income | 26 309 | 23 422 | 48 285 |
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| Administrative expenses | | | |
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| | Staff costs | -9 362 | -7 717 | -15 893 |
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| | Other administrative expenses | -6 583 | -4 843 | -9 360 |
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| Total administrative expenses | -15 945 | -12 561 | -25 252 |
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| Depreciation and write-downs on | | | |
| tangible | | | |
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| and intangible assets | -1 461 | -1 110 | -2 349 |
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| Other operating expenses | -1 068 | -886 | -1 917 |
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| Share of associated companies' | -30 | -7 | -47 |
| results | | | |
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| Net operating profit | 7 805 | 8 858 | 18 720 |
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| Income taxes | -2 038 | -57 | -2 007 |
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| Profit for the financial year | 5 767 | 8 801 | 16 713 |
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| Attributable to: | | | |
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| | Equity holders of the parent | 5 765 | 8 831 | 16 765 |
| | company | | | |
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| | Minority interests | 2 | -30 | -52 |
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| Earnings per share, eur | 0,17 | 0,26 | 0,50 |
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| CONSOLIDATED CASH FLOW STATEMENT | 1.1. - | 1.1. - | 1.1. - |
| (IFRS) | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| | EUR 1000 | | | |
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| | Cash flow from operating | | | |
| | activities | | | |
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| | Net operating profit | 7 804 | 8 858 | 18 720 |
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| | Adjustments: | 2 038 | -563 | 1 234 |
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| | Change in working capital | 959 | 682 | 19 173 |
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| | Income taxes paid | -114 | -38 | -44 |
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| | Cash flow from operating | 10 687 | 8 939 | 39 083 |
| | activities | | | |
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| | Cash flow from investing | | | |
| | activities | | | |
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| | Investments in intangible and | -1 247 | -2 189 | -3 351 |
| | tangible assets | | | |
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| | Other investments | -258 | -164 | -164 |
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| | Acquisitions of subsidiaries | 0 | 0 | -5 446 |
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| | Cash flow from investing | -1 505 | -2 353 | -8 960 |
| | activities | | | |
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| | Cash flow from financing | | | |
| | activities | | | |
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| | Share issue | 25 | 585 | 585 |
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| | Payment of dividend | -13 482 | -6 678 | -6 678 |
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| | Cash flow from financing | -13 457 | -6 093 | -6 093 |
| | activities | | | |
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| | Change in cash and cash | -4 275 | 493 | 24 029 |
| | equivalents | | | |
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| | Cash and cash equivalents at Jan | 48 575 | 24 546 | 24 546 |
| | 1. | | | |
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| | Cash and cash equivalents at the | 44 300 | 25 039 | 48 575 |
| | end of the period | | | |
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| STATEMENT OF CHANGES | | | | | | |
| IN EQUITY | | | | | | |
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| EUR 1000 | | | | | | | |
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| | Share | Share | Reserv | Fair | Accrued | Minor | Total |
| | capit | premiu | e fund | value | profit | ity | |
| | al | m | | reserv | funds | inter | |
| | | accoun | | e | | ests | |
| | | t | | | | | |
--------------------------------------------------------------------------------
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| Equity capital | 5 731 | 48 675 | 2 106 | 0 | 17 131 | 0 | 73 644 |
| 1.1.2007 | | | | | | | |
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| Subscription | | | | | | | |
| with the | | | | | | | |
| option rights | | | | | | | |
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| Financial | | | | 123 | | | 123 |
| instruments | | | | | | | |
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| Equity | | | | | | | 0 |
| compensation | | | | | | | |
| plans | | | | | | | |
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| Profit for the | | | | | 5 765 | | 5 765 |
| period | | | | | | | |
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| Distribution | | | | | -13 485 | | -13
| of dividend | | | | |
| | 485 |
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| Minority | | | | | | 27 | 27 |
| interest | | | | | | | |
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| Equity capital | 5 731 | 48 675 | 2 106 | 123 | 9 411 | 27 | 66 073 |
| 30.6.2007 | | | | | | | |
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| Equity capital | 5 678 | 48 144 | 2 106 | 9 | 7 023 | 103 | 63 063 |
| 1.1.2006 | | | | | | | |
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| Subscription | 54 | 531 | | | | | 585 |
| with the | | | | | | | |
| option rights | | | | | | | |
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| Financial | | | | -9 | | | -9 |
| instruments | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | 23 | | 23 |
| compensation | | | | | | | |
| plans | | | | | | | |
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| Profit for the | | | | | 16 765 | -52 | 16 713 |
| period | | | | | | | |
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| Distribution | | | | | -6 679 | | -6 679 |
| of dividend | | | | | | | |
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| Minority | | | | | | -51 | -51 |
| interest | | | | | | | |
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| Equity capital | 5 731 | 48 675 | 2 106 | 0 | 17 131 | 0 | 73 644 |
| 31.12.2006 | | | | | | | |
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| QUARTERLY FINANCIAL | 4 - | 1 - | 10 - | 7 - | 4 - |
| PERFORMANCE | 6/2007 | 3/2007 | 12/2006 | 9/2006 | 6/2006 |
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| EUR 1000 | | | | | |
--------------------------------------------------------------------------------
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| Interest income | 5 666 | 4 601 | 4 438 | 3 702 | 3 307 |
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| Interest expense | -3 823 | -2 847 | -2 814 | -2 298 | -2 036 |
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| Net interest income | 1 843 | 1 754 | 1 624 | 1 405 | 1 271 |
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| Net fee and commission | 9 602 | 8 945 | 13 388 | 5 099 | 9 600 |
| income | | | | | |
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| Impairment of receivables | 2 | -25 | 4 | 3 | 2 |
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| Net income from financial | 540 | 1 368 | 929 | 468 | 53 |
| assets held for trading | | | | | |
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| Net income from | -6 | 24 | 317 | 100 | 4 |
| available-for-sale | | | | | |
| financial assets | | | | | |
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| Net income from foreign | 43 | 13 | 34 | 14 | -12 |
| exchange dealing | | | | | |
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| Other operating income | 1 325 | 881 | 781 | 697 | 697 |
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| Total income | 13 349 | 12 960 | 17 078 | 7 785 | 11 615 |
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| Administrative expenses | -8 762 | -7 184 | -7 889 | -4 802 | -6 322 |
| total | | | | | |
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| Depreciation and | | | | | |
| write-downs on tangible | | | | | |
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| and intangible assets | -747 | -714 | -635 | -605 | -584 |
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| Other operating expenses | -541 | -527 | -545 | -486 | -463 |
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| Share of associated | -16 | -14 | -30 | -10 | 22 |
| companies' results | | | | | |
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| Total expenses | -10 | -8 439 | -9 099 | -5 902 | -7 347 |
| | 066 | | | | |
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| Net operating profit | 3 283 | 4 521 | 7 979 | 1 883 | 4 268 |
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| Income taxes | -839 | -1 199 | -1 938 | -12 | -28 |
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| Profit for the financial | 2 444 | 3 322 | 6 041 | 1 871 | 4 240 |
| period | | | | | |
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| Attributable to: | | | | | |
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| | Equity holders of the | 2 442 | 3 322 | 6 040 | 1 893 | 4 257 |
| | parent company | | | | | |
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| | Minority interests | 2 | 0 | 1 | -23 | -17 |
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| Earnings per share, | 0,07 | 0,10 | 0,18 | 0,05 | 0,13 |
| quarterly, eur | | | | | |
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| CAPITAL ADEQUACY | | | |
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| EUR 1000 | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| Own funds | | | |
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| | Original own funds | 32 342 | 36 779 | 30 813 |
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| | Additional funds, gross | 123 | 98 | 0 |
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| | Deductions | -183 | -25 | 0 |
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| Total own funds | 32 282 | 36 852 | 30 813 |
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| Capital requirement for credit | 9 734 | 12 806 | 8 408 |
| risks | | | |
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| Capital requrement for market risks | 5 373 | 6 037 | 4 636 |
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| Capital requirement for operational | 4 999 | - | - |
| risks | | | |
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| Capital adequacy ratio (%) | 12,8 | 15,6 | 18,9 |
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| The Capital adequacy ratio at 30.6.2007 is calculated by the BASEL II code. |
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| LEASE OBLIGATIONS | | | |
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| Irrevocable minimum lease obligations | | |
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| Operating leases | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| Operating lease obligations | | | |
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| In less than one year | 204 | 168 | 433 |
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| Between one and five years | 717 | 673 | 566 |
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| Total | 921 | 841 | 999 |
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| Premises lease obligations | | | |
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| In less than one year | 690 | 652 | 1 392 |
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| Between one and five years | 3 936 | 5 315 | 3 936 |
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| Total | 4 626 | 5 967 | 5 328 |
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| Financial leases | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| Minimum lease payments | | | |
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| In less than one year | 185 | 106 | 135 |
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| Between one and five years | 232 | 185 | 203 |
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| Total | 417 | 291 | 338 |
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| GUARANTEES AND PLEDGES | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| On own behalf | | | |
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| Pledged securities | 60 819 | 76 295 | 106 766 |
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| Pledged claims on credit | 10 918 | 9 364 | 9 325 |
| institutions | | | |
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| Total | 71 737 | 85 658 | 116 091 |
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| DERIVATIVES | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| Values of underlying instruments | | |
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| Interest rate derivatives | 4 827 | 5 456 | 5 441 |
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| Equity derivatives | 1 158 | 1 020 | 2 817 |
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| KEY FINANCIAL INDICATORS | | | |
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| | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| Return on equity, % | * 16,5 | * 27,3 | 24,5 |
| (Annualised) | | | |
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| Operating costs to earnings | 0,7 | 0,6 | 0,6 |
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| Profit per share, eur | * 0,34 | * 0,53 | 0,50 |
| (Annualised) | | | |
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| Profit per share, quarterly, | 0,07 | 0,13 | 0,18 |
| eur | | | |
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| Profit per share, eur | 0,07 | 0,13 | 0,18 |
| (diluted) | | | |
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| Profit per share trailing 12m, | 0,41 | 0,44 | 0,50 |
| eur | | | |
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| Equity per share, eur | 1,96 | 1,95 | 2,18 |
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| Equity ratio, % | 8,8 | 10,2 | 11,7 |
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| *) Annualised | | | |
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The principles of calculating financial indicators
Return on equity % (net operating profit/loss - taxes) x 100
------------------------------------------
total equity
(average of the figures for the beginning
and the end of the year)
Operating costs to earnings
administrative expenses + depreciation and
write-downs on tangible and intangible assets
+ other operating expenses
---------------------------------------------
net interest income + net commission income +
impairment of receivables + net income from financial
assets held for trading + net income from available-
for-sale
financial assets + net income from
exchange dealing + other operating income
+ share of associated companies' results (net)
Profit per share, eur net operating profit - taxes + minority
interest
---------------------------------------------
average weighted number of shares corrected with
share issues
Profit per share, diluted, eur
net operating profit - taxes + minority
interest
--------------------------------------------
weighted average number of shares during the
financial period (diluted)
Equity per share, eur total equity
--------------------------------------------
adjusted average number of shares on balance
sheet date
Equity ratio, % total equity x 100
-------------------------------------------
balance sheet total