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2016-11-16 18:12:49 CET 2016-11-16 18:12:49 CET REGULATED INFORMATION Arion Bank hf. - Financial Statement ReleaseArion Bank’s 9M 2016 financial resultsArion Bank reported net earnings of ISK 17.3 billion for the first nine months of 2016, compared with ISK 25.4 billion for the same period of 2015. Return on equity was 11.2%, compared with 19.8% for the first nine months of 2015. Adjusted earnings amounted to ISK 5.7 billion, compared with ISK 11.5 billion in the first nine months of 2015. Return on equity from adjusted operations was 3.7%, compared with 9.5% for the same period last year. Total assets amounted to ISK 1,038.5 billion at the end of September, compared with ISK 1,011.0 billion at the end of 2015. Shareholders’ equity totalled ISK 206.9 billion at the end of September, compared with ISK 192.8 billion at the end of 2015. The Bank enjoys a strong financial position and has focused on maintaining good liquidity in the period leading up to the lifting of the capital controls. The Bank’s capital ratio at the end of the period was 26.1%, compared with 24.2% at the end of 2015. Tier 1 Capital increased during the period to 25.5%, compared with 23.4% at the end of 2015. Highlights of the income statement and key performance indicators: In ISK million 9M 2016 9M 2015 Q3 2016 Q3 2015 Net interest income 22,058 20,287 7,432 7,112 Net commission income 10,213 10,726 3,466 3,292 Net financial income 4,339 10,176 844 453 Share of profit of associates 710 6,956 16 2,739 Other operating income 2,642 2,232 781 709 ------------------------------------------------------------------------------- Operating income 39,962 50,377 12,539 14,305 Salaries and related expense (12,252) (10,320) (3,826) (3,153) Other operating expenses (10,393) (9,016) (3,425) (3,012) Bank levy (2,190) (2,168) (705) (779) Net impairment 6,827 (114) 5,882 (33) ------------------------------------------------------------------------------- Net earnings before taxes 21,954 28,759 10,467 7,328 Income tax (5,261) (3,639) (3,170) (1,272) Net gain from disc. operations 569 277 206 15 ------------------------------------------------------------------------------- Net earnings 17,262 25,397 7,503 6,071 ------------------------------------------------------------------------------- KPI's: Return on equity (ROE) 11.2% 19.8% 14.4% 14.2% Net interest margin (int. bearing assets) 3.1% 3.0% 3.1% 3.1% Cost-to-income ratio 56.7% 38.4% 57.8% 43.1% Tier 1 ratio 25.5% 22.2% 25.5% 22.2% Höskuldur H. Ólafsson, CEO of Arion Bank: “The financial results for the first nine months of 2016 are satisfactory. The Bank’s core operations have performed slightly below expectations as external conditions have been challenging in many respects. The performance of the equities market had a negative impact on the financial results, as the Bank still has holdings in listed equities. Nevertheless the core operations remain solid and the Bank continues to consolidate its capital. Standard & Poor's cited Arion Bank's improving capital position, better access to foreign debt capital markets and greater resilience in the Icelandic economy as reasons for upgrading the Bank’s credit rating to BBB/A-2 with a positive outlook. The spread on the Bank’s international issues on the secondary market has decreased, clearly indicating that there is demand on the international credit markets for Arion Bank bonds. At the end of September Arion Bank completed the acquisition of the insurance company Vörður, adding non-life insurance to our product range, which has already included life insurance for several years. As a subsidiary of Arion Bank, Vörður will form a close partnership with the Bank, bringing benefits to the customers of both companies.” Conference call in English Arion Bank will be hosting a conference call in English on Thursday 17 November 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. |
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