Well-established local retail franchise in Finland. Strong projected risk-adjusted capitalization underpinned by sound earnings capacity. Focus on low-risk collateralized lending to retail clients and small and midsize enterprises. Concentration risk in loan book, due to focus mainly on residential mortgage lending in Finland. Limited geographic, business, and earnings diversification. Reliance on wholesale funding market as covered bond issuer. The stable outlook on Finland-based Aktia Bank reflects our view that it will maintain its market position as a well-established local retail franchise in Finland with expanding wealth management operations. The outlook also reflects our expectation that improving earnings capacity will support the bank's RAC ratio over the next 12-24 months. The sound economic conditions in Finland further underpin this view. We
