2017-03-23 19:13:48 CET

2017-03-23 19:13:48 CET


REGULATED INFORMATION

English Islandic
Íslandsbanki hf. - Decisions of general meeting

Islandsbanki hf. : Results of Íslandsbanki's Annual General Meeting 23 March 2017 


Íslandsbanki held its Annual General Meeting today, Thursday 23 March. Chairman
of the Board Fridrik Sophusson addressed the meeting on behalf of the Board, and
CEO Birna Einarsdóttir reviewed the Bank's earnings reports and the highlights
of operations in 2016.

Íslandsbanki paid ISK 10.2bn in taxes in 2016, including ISK 2.8bn in the form
of the special bank tax. Fridrik emphasised the need for a substantial reduction
in the bank tax, which was introduced as a temporary measure to finance the
Government's mortgage loan adjustments. In comparison with neighbouring
countries, the tax burden in Iceland is fourfold. As a result, it is necessary
to provide investors with some assurance about future developments; otherwise,
the tax will affect both the Bank's market listing and the price the State could
receive for selling it. In addition, the tax situation erodes the competitive
position of Iceland's banks.

Fridrik also noted that the Icelandic banking system had shrunk from more than
eight times GDP in 2008 to less than twice GDP by the end of 2015. By that
measure, it has shrunk by roughly 80% and is now modest in size compared with
the banking systems in other Nordic countries.

A busy and successful year

At the meeting, Birna discussed the Bank's operations and the highlights of an
eventful year. The Bank moved to its new headquarters at the end of 2016,
thereby uniting staff members previously working in four locations in one
location. Birna reviewed the Bank's loan portfolio, some 13% of it comprising
loans to the tourism sector during a year that saw a modest increase in lending
activity.

She also mentioned the Bank's EUR 500m bond issue at the best terms since 2008.
She welcomed the strong demand, with the number of foreign bond investors nearly
doubling. The Bank's credit ratings were upgraded to BBB by both Standard &
Poor's and Fitch. Íslandsbanki is the only Icelandic bank that is rated by two
international rating agencies.

The Bank came out on top of the Icelandic Customer Satisfaction Index for the
fourth year in a row. Birna thanked the Bank's staff for a job well done during
the year, stating that the Satisfaction Index rankings supported the Bank's
stated vision of providing the best banking services in Iceland.

Results of the AGM

The following were elected to the Board of Directors: Anna Thórdardóttir, Audur
Finnbogadóttir, Árni Stefánsson, Hallgrímur Snorrason, Heidrún Jónsdóttir, Helga
Valfells, and Friðrik Sophusson, who was also elected Chairman of the Board.
Herdís Gunnarsdóttir and Pálmi Kristinsson were elected as alternates. The AGM
approved a dividend payment of ISK 10bn to the Bank's shareholders for 2016
profits. The Board was also authorised to call an extraordinary shareholders'
meeting later in the year because of the possibility that a proposal for an
extraordinary dividend on previous operational years could be presented. The
Bank's compensation policy was approved at the meeting, and remuneration to
Board members and alternates was decided as well. Ernst & Young will remain the
Bank's external auditing firm until the next AGM.

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, tinna.molphy@islandsbanki.is, tel
    +354 440 3187.
  * Media Relations - Edda Hermannsdottir, edda.hermannsdottir@islandsbanki.is
    and tel: +354 440 4005.






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