Advance Information on the 2011 Financial Statements
Tapiola Bank’s operating profit increased to EUR 4.5 million (EUR 1.8 million). The turnover increased by 20.8 per cent to EUR 67.1 million (EUR 55.5 million).
“Our result was better than expected. The main reasons for this were successful investment operations and the strengthened interest margin due to the increase in interest rates during the spring and summer. The result was also affected by the increase in commission income received from payment services and the return on securities trading operations started a year ago,” says Marja Pajulahti, Managing Director.
The bank’s interest margin rose by 25.7 per cent to EUR 17.7 million (EUR 14.1 million). Commission income increased by 15.4 per cent to EUR 17.8 million (EUR 15.4 million). Receivables from the public and from public corporations (lending activity) increased by 11.0 per cent to EUR 1,500.4 million (EUR 1,351.7 million) and liabilities to the public and public corporations increased by 13.3 per cent to EUR 1,625.9 million (EUR 1,435.1 million).
The number of customers increased by 22,000
The bank’s customer base grew by 22,000 during the review period and is now 233,000 (211,000). The number of account customers grew by 10,000 during the review period and is now 174,000 (164,000).
“The growth of our customer base remained quite good during the year under review despite increased economic uncertainty. We are pleased to see that the customer satisfaction with Tapiola Bank remained very high. The customers have given our services the overall rating of 9-, and 79 per cent of our customers have recommended us to their friends and acquaintances. Furthermore, our customers considered our housing loans the best in the market in EPSI Rating survey’s comparison of bank loans,” says Pajulahti.
Solvency improved compared to the previous year
The solvency ratio was 15.3 per cent, compared with 13.7 per cent in the corresponding period last year. The proportion of primary own funds calculated from this was 11.8 per cent (10.1%). Solvency was boosted during the year under review because of the forthcoming bank solvency regulation.
According to Marja Pajulahti, the aim of Tapiola Bank is to remain profitable this year despite the challenging financial situation. “Low housing loan margins are likely to become a thing of the past due to rising bank refinancing costs. We expect people to become more interested in asset management services as their wealth increases.”
The customer assets and the number of unit holders in Tapiola Asset Management increased
Tapiola Asset Management, which belongs to the Tapiola Bank Group, also performed above expectations in the challenging investment environment. The customer funds managed by Tapiola Asset Management increased to EUR 6,408.8 million (EUR 5,893.0 million) and the number of unit holders increased to 52,993 (50,872). Tapiola Asset Management’s market share of the fund capital in mutual funds registered in Finland increased to 3.0 per cent (2.9%). At the turn of the year, the company was the eighth largest Finnish fund management company (9th largest).
“We were especially pleased to see the success of our vision for investment allocation and, subsequently, excellent returns compared to the investment market and exceptionally satisfied customers. Although the investment year 2011 was considered "lost" in the market, the fund and asset management customers of Tapiola Asset Management could enjoy solid returns compared to the investment market. The increased number of institutional customers and the development of customer relationships was also important,” says Tom Liljeström, Managing Director.
Tapiola Asset Management recorded an operating profit of EUR 1.3 million (EUR 3.1 million), exceeding the defined target. Turnover amounted to EUR 15.5 million (EUR 15.9 million). The solvency ratio (primary own funds) was 25.4 per cent, compared with 25.9 per cent in the corresponding period last year.
The financial figures in this press release are preliminary. Preliminary financial statement data of other Tapiola Group companies will be presented in a press release on 15 February 2012.
Tapiola Bank Ltd
Tel. +358 9 453 7106, 040 842 8665
Tapiola Asset Management Ltd.
Tel. +358 9 453 2102, 0400 440929
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