Íslandsbanki hf. - Decisions of general meeting

Islandsbanki hf. : AGM Statement

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|The Annual General Meeting of Íslandsbanki was held today, 19 April.          |
|Friðrik Sophusson, Chairman of the Board presented the Board's report and     |
|Birna Einarsdóttir, CEO presented the 2015 annual results and the             |
|operational highlights for the year.                                          |
|The results of the Annual General Meeting:                                    |
|A new board of directors was elected for the bank:                            |
|Anna Þórðardóttir, Auður Finnbogadóttir, Árni Stefánsson, Hallgrímur          |
|Snorrason, Heiðrún Jónsdóttir, Helga Valfells and Friðrik Sophusson,as        |
|chairman of the board.                                                        |
|                                                                              |
|Herdís Gunnarsdóttir and Pálmi Kristinsson were elected as alternates of the  |
|board.                                                                        |
|Marianne Økland, Eva Cederbalk, Neil Graeme Brown, Gunnar Fjalar Helgason and |
|Árni Tómasson are no longer members of the board and Jón Eiríksson and Margrét|
|Kristmannsdóttir are no longer alternates of the board.                       |
|In  addition, the Consolidated Financial Statement was approved and that up to|
|50% of  net  profit  in  2015 will  be  paid in dividends to shareholders, but|
|otherwise  the profit  will be  added to  the bank's  equity. Moreover, it was|
|agreed  that the Board may convene a  special shareholder meeting later in the|
|year  where  a  proposal  regarding  payment  of  dividends  of profit for the|
|previous fiscal years could be suggested.                                     |
|                                                                              |
|A  compensation  policy  for  the  bank  as  well  as  a  proposal  for  board|
|remuneration was approved. The meeting entrusted the Board of Directors to add|
|to  its rules of  procedure provisions on  the competitive independence of the|
|bank towards other state-owned commercial banks.                              |
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|The meeting approved a proposal to amend the bank's articles of association to|
|the effect that the bank's domicile and legal venue will be in Kópavogur.     |
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|Moreover the Icelandic National Audit Office was appointed auditor of the bank|
|for the next five years.                                                      |
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|The Annual Report is available on www.islandsbanki.is/annualreport            |
|Other relevant documents from the Annual General Meeting are available        |
|and archived on www.islandsbanki.is/ir                                        |
|                                                                              |
|For further information:                                                      |
|  * Investor Relations - Tinna Molphy, ir@islandsbanki.is and tel:+354        |
|    440 3187.                                                                 |
|  * Director of Communications - Edda Hermannsdóttir, pr@islandsbanki.is and  |
|    tel: +354 844 4005.                                                       |
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[HUG#2004948]

Attachments:

Proposals to the AGM.pdf