Aktia Pankki Oyj : Annual and Sustainability Report 2020

Aktia 2020

Business areasResponsible AktiaReport by the Board of DirectorsFinancial StatementCorporate Governance Report

Aktia / Annual and Sustainability Report 2020

2

Table of contents

Aktia 2020

CEO's comments 4

Aktia in brief 7

Highlights of the year 2020 9

Operating environment 11

Aktia's strategy 12

Value creation 14

Aktia as an investment object

- stable and responsible value creation 15

Information for shareholders 17

Business areas

Business areas and reporting

business segments 20

Private customers 21

Corporate customers 23

Asset management 25

Life insurance 27

Responsible Aktia

Management of corporate responsibility

and ESG work and good governance 30

The corporate responsibility programme

guides our sustainability work 32

Stakeholder survey and materiality analysis 33

Objectives of corporate responsibility 34

Highlights of corporate responsibility

and ESG activities 35

UN supported sustainable development

guidelines in our operations 36

Aktia's cooperation with stakeholders 38

Solvent and reliable Aktia 40

Partner for economic well-being 45

Towards a better working life 53

Environmentally responsible actor 60

Reporting principles 64

GRI content index 65

Report by the Board of Directors

Report by the Board of Directors 69

Non-financial report 2020 94

Financial Statement

Aktia Bank Plc -

consolidated financial statements 104

Aktia Bank Plc -

parent company's financial statement 179

Signing of the Report by the Board of Directors

and the Financial statements 2020 210

Auditor's Report to the Annual General Meeting

of Aktia Bank Plc 211

Corporate Governance Report

Corporate Governance Report

for Aktia Bank Plc 216

Aktia 2020

Business areasResponsible AktiaReport by the Board of DirectorsFinancial StatementCorporate Governance Report

Aktia / Annual and Sustainability Report 2020

4

CEO'S COMMENTS

Our goal is to be the best asset manager in Finland

For Aktia and the world around us, 2020 was an unusual year to say the least, and at times it even had some unreal characteristics. The rapid spread of the coronavirus early in the year and the increased uncertainty of the state of the world economy led to a steep and quick market drop in March. This also impacted Aktia's result for the entire year - in particular, the negative value changes in the life insurance company's investment portfolio during the first quarter decreased the comparable operating profit for the entire year to EUR 55.1 (68.2) million.

Aktia's stable underlying business and the markets recovering levels preceding the crisis, or even above them, have nevertheless led to a quick recovery of Aktia's financial performance. Net interest income for the year increased by 4 per cent from the previous year, and commission income remained at the previous year's level despite the market decline. Our goal-oriented work for improving our customer business is bearing fruit.

Remote work now part of everyday life The pandemic has also had a major impact on everyday work. Approximately 80 per cent of Aktia's personnel has been able to work from home during the coronavirus pandemic, and the work of all Aktia's employees played a very important role in securing the financial situation of our customers and in keeping the wheels of society in motion.

The compulsory separation has also shown how important human contacts are. The highlights of 2020 included moving to the new and modern head office by the Narinkkatori square in Helsinki, and we now also have beautiful new premises in Vaasa and Karjaa. Due to remote work, we have not been able to fully utilise these premises yet, but I hope that the time for meeting face-to-face will soon come again.

The fluent migration of Aktia's employees to remote work by seeking new solutions has been an indication of brilliant cooperation for achieving