Business environment

Aktia’s financial results are affected by many factors, of which the most important are the general economic situation, fluctuations in share prices, interest rates and exchange rates and the competitive situation. Changes in these factors can have an impact on demand for banking, insurance, asset management and real estate agency services.

Business environment 1-3/2012

Interest rates fell sharply at the end of January and general interest rate levels
are now exceptionally low, which has a negative impact on Aktia’s net
interest income.

According to Statistics Finland, inflation fell to 2.9% in March 2012 from the
slightly higher level of 3.1% in February. This slight fall in inflation was primarily
due to a weaker increase in energy prices.

The global uncertainty has continued and especially the worries concerning
southern Europe and the euro have had a negative impact on the
value of Aktia’s financial assets. On the other hand, low interest rates have
resulted in higher values for Aktia’s fixed-rate investments.

According to Statistics Finland consumer confidence in the economy
strengthened in the first few months of year, but is clearly at lower levels
than last year. The indicator stood at 8.0 (17.7) in March from 8.3 (20.0) in
February and 3.4 (16.6) in January. The long-term average was 12.9.

The rise in real estate prices in Finland during the beginning of the year
was 0.2% in the whole country and 1.2% in the Helsinki region compared
to the corresponding period in 2011. Outside the Helsinki region, real estate
prices fell by 0.6%. Household debt has risen much faster than incomes
in recent years. The debt-equity ratio of Finnish households, i.e. debt in relation
to disposable income, stood at 156%, against 108% at the beginning
of this century. (Statistics Finland)

Unemployment stood at 8.5% in March 2012, 0.8 percentage points less
than a year ago. (Statistics Finland)

The Nasdaq OMX Helsinki 25 index rose by 10.9% in the period January to March 2012.

 Useful links

Statistics Finland
www.tilastokeskus.fi

Bank of Finland
www.bof.fi

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