Aktia reported Q1 PBT in line with consensus, with 4% better NII and Life 30% ahead as the positive takeaways, but with higher costs and loan losses, both partly explained by one-off items. Fully adjusted, we believe the print was actually above consensus expectations. However, given that Q1 was the last quarter before the Taaleri acquisition will be included, this quarter should not attract much attention.

We have raised our fair value range to EUR11.1-12.9 on our higher estimates. At 8.2x 2023E earnings, Aktia trades at a discount to Nordic banking peers at 10.4x. With the potential for revenue growth being higher due to Aktia’s large exposure to asset management and the defensive characteristics of its loan book, we see no reason for this. Paying 1.01x BV for an 11.6% 2022E ROE also looks attractive to us.

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