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Arion Banki Audit Report / Information 2021

Jul 1, 2021

2189_rns_2021-07-01_98b3cb01-1e04-4037-ab29-a1642ba989f4.pdf

Audit Report / Information

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Press Release

01 July 2021 17:33:00 GMT

The Icelandic FSA's annual assessment of capital requirement for Arion Bank

The Financial Supervisory Authority of the Central Bank of Iceland (FME) carries out an annual assessment of risk in the operations of systemically important financial institutions by means of a Supervisory Review and Evaluation Process (SREP). The process involves an assessment of the capital requirement for financial institutions which results in an additional capital requirement under Pillar II.

The conclusions of this annual process for Arion Bank have now been made available. The Bank shall maintain an additional capital requirement of 3.2% of risk-weighted assets, which is an increase of 0.1 percentage points from the previous assessment. The additional requirement is mainly due to credit risk, concentration risk, market and interest rate risk and risk relating to subsidiaries. The Bank's total capital requirement, taking into account capital buffers, therefore increases from 18.4% to 18.5%.

For any further information please contact:

Theodór Friðbertsson, Head of Investor Relations at Arion Bank, [email protected], tel. +354 856 6760 or Haraldur Guðni Eidsson, Head of Corporate Communications, [email protected], tel. +354 856 7108.

Attachments

The Icelandic FSA's annual assessment of capital requirement for Arion Bank

Arion banki hf.

Borgartúni 19, 105 Reykjavik — 444 7000 — arionbank.is — /arionbanki