|
|||
![]() |
|||
2016-05-11 18:33:28 CEST 2016-05-11 18:33:28 CEST REGULATED INFORMATION Arion Bank hf. - Financial Statement ReleaseArion Bank’s Q1 2016 financial resultsArion Bank reported net earnings of ISK 2.9 billion for the first three months of 2016, compared with ISK 14.9 billion for the same period of 2015. Return on equity was 5.7%, compared with 35.1% for the first three months of 2015. Earnings from regular operations amounted to ISK 2.6 billion, compared with ISK 4.0 billion in the first quarter of 2015. Return on equity from regular operations was 5.1%, compared with 9.8% for the same period last year. Total assets amounted to ISK 1,028.6 billion at the end of March, compared with ISK 1,011.0 billion at the end of 2015. Shareholders’ equity totalled ISK 195.2 billion at the end of March, compared with ISK 192.8 billion at the end of 2015. The Bank’s capital ratio at the end of the period was 27.0%, compared with 24.2% at the end of 2015. Tier 1 Capital increased during the year to 26.2%, compared with 23.4% at the end of 2015. Highlights of the income statement and key performance indicators: Income Statement In ISK million Q1 2016 Q1 2015 Diff Diff% Net interest income 7,273 5,783 1,490 26% Net commission income 3,219 3,757 (538) (14%) Net financial income (301) 7,539 (7,840) (104%) Share of profit of associates 677 4,211 (3,534) (84%) Other income 1,235 491 744 152% ----------------------------------------------------------------------------- Operating income 12,103 21,781 (9,678) -44% Salaries and related expense (4,108) (3,492) (616) 18% Other operating expenses (3,234) (2,898) (336) 12% Bank levy (742) (730) (12) 2% Net impairment (503) 1,782 (2,285) -128% ----------------------------------------------------------------------------- Net earnings before taxes 3,516 16,443 (12,927) -79% Income tax (737) (1,720) 983 (57%) Net gain from disc. operations 104 183 (79) -43% ----------------------------------------------------------------------------- Net earnings 2,883 14,906 (12,023) -81% ============================================================================= KPI's: Return on equity (ROE) 5.7% 35.1% -29.5% Net interest margin (int. bearing assets) 3.1% 2.6% 0.5% Cost-to-income ratio 60.7% 29.3% 31.3% Tier 1 ratio 26.2% 21.2% 5.0% Höskuldur H. Ólafsson, CEO of Arion Bank: “The financial results for the first quarter are satisfactory, especially given that the conditions on the Icelandic securities market were negative for the Bank. The Bank performed well in its regular operations, particularly in terms of interest income, which was up on last year, mainly as a result of higher inflation and higher interest rates as well as reduced interest expenses. However, the Bank's operating expenses increased during the quarter, not least as a result of collective wage agreements and a rise in the number of employees, chiefly at Valitor, a subsidiary of the Bank which is expanding internationally. The Bank has introduced some changes to its funding and it is now longer term than before. Most significant in this respect was the agreement reached at the beginning of the year with Kaupthing to refinance an older loan and Kaupthing's foreign currency deposits at Arion Bank. This involved issuing a 7-year bond in the amount of ISK 93 billion. In April Arion Bank issued its second benchmark bond in euros at improved terms over last year’s issue. The Bank’s solid position and its upgraded credit rating mean that the international credit markets are more accessible than ever. Startup Reykjavík will be held for the fifth time this summer. This year saw a surge in applications and it will be announced in the next few days which ten companies will be selected to take part. Startup Reykjavík was recently named the best business accelerator in Iceland in 2016 at the Nordic Startup Awards. Later this year Startup Reykjavík Energy will be held for the third time. Arion Bank has already invested in 54 companies through these two accelerators and a further 17 will be added this year. The companies which have passed through the accelerators have raised ISK 2.2 billion in additional funding in the form of equity and grants. We have also invested ISK 1 billion in the fund Eyrir Sprotar, whose role is to invest in new companies showing considerable growth potential. The Bank is a devoted advocate of innovation and also sponsors the ambitious NKG innovation competition for school pupils, and earlier this year we signed an agreement with Junior Achievement which promotes innovation at secondary schools. In connection with this, the student company of the year was recently chosen at a ceremony at Arion Bank. It is our view that by supporting innovation at various levels of education and different stages of a company's development we are fostering an environment in which an even more varied business sector can prosper in the future. Many exciting developments are taking place in FinTech and a great number of innovations are being made in this field. At the beginning of June we are hosting the Arion Bank FinTech Hackathon. It is open to everybody and participants will get the chance to develop and program innovative financial solutions for corporate and retail customers.” Conference call in English Arion Bank will be hosting a conference call in English on Thursday 12 May at 1:00 pm GMT, where Stefán Pétursson, Chief Financial Officer, will discuss the highlights of the Bank’s financial results. People interested in participating can contact ir@arionbanki.is to obtain dial-in information. For further information please contact Haraldur Gudni Eidsson of Arion Bank's Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444 7108. |
|||
|