Aktia Bank Oyj, Finland’s first bank to sell covered bonds, rose to its highest price in more than a week in Helsinki trading after LaehiTapiola Oy said the lender may give shareholders higher dividends.
The shares added as much as 3 percent to 7.69 euros, the highest intraday price since Sept. 23, and gained 1.7 percent at 3:51 p.m. in the Finnish capital. Volume on the stock was 76 percent of the average traded daily over the past three months.
“Aktia’s capital adequacy is at an excellent level and enables a high dividend payment,” LaehiTapiola wrote in a note to clients today. LaehiTapiola said it estimates that Aktia will have a return on equity of 8 percent this year.
Aktia’s dividend yield is currently at 6.5 percent compared with a 3.95 percent average for the 129 companies in the Nasdaq OMX Helsinki All-Share Index, according to data compiled by Bloomberg. The Helsinki-based bank raised its regular cash dividend by 20 percent to 36 cents a share for 2012 and made a 14 cent return of capital to shareholders. Its Tier 1 capital ratio has risen to 12.1 percent at the end of June from 11.7 percent a year earlier.