Well-established local retail franchise in Finland. Strong projected capitalization underpinned by sound earnings capacity. Focus on low-risk collateralized lending to retail clients and small and midsize enterprises. Concentration risk in the 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. S&P Global Ratings' stable outlook on Aktia Bank PLC reflects our view that the bank will continue to maintain its market position as a well-established local retail franchise in Finland. In addition to this, the outlook also reflects our expectation that the bank's capitalization will be supported by sound earnings capacity over the next 24 months. The improving economic conditions in Finland
