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Arion Banki — Earnings Release 2021
Apr 19, 2021
2189_rns_2021-04-19_35e3d286-2921-45c0-89da-1c7aec59c094.pdf
Earnings Release
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Press Release
19 April 2021 14:49:00 GMT
Arion Bank: Preliminary financial results for Q1 2021 – net earnings of approximately ISK 6 billion
The preliminary financial results for Q1 2021 show net earnings of approximately ISK 6 billion and calculated return on equity on an annual basis of more than 12%. Earnings are substantially above available analyst estimates.
Operating income for the quarter was ISK 13 billion, of which core income (net interest income, net commission income and net insurance income) was ISK 11 billion, representing a 4% increase from the first quarter last year. Net interest income increased slightly between years. Operating expenses for the quarter were approximately ISK 6 billion, decreasing by 2.5% from Q1 2020.
The main change between years is in net impairments, with positive ISK 1.1 billion during the first quarter 2021, compared with negative ISK 2.9 billion in Q1 2020 following the uncertainty in the initial stages of the COVID-19 pandemic. The positive effect in Q1 2021 is mainly due to payments on previously impaired loans, more clarity over the position of major clients following COVID-19 and changes in the structure of the loan book, with a higher proportion of well collateralized mortgage loans instead of corporate loans. Loans to customers increased by 1.7% during the first quarter of 2021.
Income tax rate for the quarter was 24% and net earnings from assets held for sale were minimal.
The financial accounts and investor presentations for Q1 2021 are still being finalized. The aforementioned amounts are therefore subject to change. The financial accounts will be published on 5 May.
It is appropriate to iterate that there is still some uncertainty in the Bank's operational environment related to the development of the COVID-19 pandemic and its effect on the Icelandic economy.
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.
Arion banki hf.
Borgartúni 19, 105 Reykjavik — 444 7000 — arionbank.is — /arionbanki
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This information is information that Arion Bank is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-04-19 14:49 GMT.
Attachments
Arion Bank: Preliminary financial results for Q1 2021 – net earnings of approximately ISK 6 billion
Arion banki hf.
Borgartúni 19, 105 Reykjavik — 444 7000 — arionbank.is — /arionbanki