Iceland · Delayed Price · Currency is ISK Arion banki Earnings Call Transcripts
Fiscal Year 2026
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ROE reached 15.5% in Q2 and 14.6% for H1, surpassing all medium-term targets, with strong loan and deposit growth, robust capital ratios, and continued cost discipline. Outlook remains cautious due to persistent inflation and high rates, but capital distribution and IT investment continue.
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Net profit rose to ISK 7.3 billion, with strong core income and robust capital ratios. Loan and deposit growth remained solid, while insurance and fee income showed seasonal and transactional volatility. Outlook remains cautious amid persistent inflation and global uncertainties.
Fiscal Year 2025
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Delivered 14.9% ROE for 2025, driven by 12.3% core income growth and strong segment performance. Capital position remains robust, with a 50% dividend payout and ISK 5B buyback planned. Merger with Kvika progressing, while economic headwinds and inflation persist.
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Delivered strong results with 16% ROE, 5% net profit growth, and robust capital ratios. Asset management and insurance segments performed well, while economic headwinds and legal uncertainties pose risks. Merger with Kvika and capital optimization initiatives are progressing.
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Return on equity reached 19.7% for the quarter, with strong core earnings and record fee income. The CET1 ratio stands at 18%, and the proposed Kvika merger is expected to be accretive within a year post-completion. Inflation and external risks remain key uncertainties.
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Return on equity reached 12.8% with net profit up to EUR 6.4 billion, driven by strong core income and fee growth. Loan book quality remains solid despite higher problem loans in construction, and a new EUR 3 billion share buyback was launched. Outlook remains positive amid external uncertainties.
Fiscal Year 2024
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ROE exceeded 13% for the fourth year, with net profit rising to ISK 26.1 billion and strong insurance and asset management performance. CET1 ratio remains robust, and capital distributions are set to continue, while cautious optimism prevails amid a challenging economic environment.
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Q3 delivered a 16.1% ROE, record insurance profits, and strong income growth, with continued capital returns and robust capital ratios. Economic headwinds and policy rate shifts may cause near-term NIM volatility, but medium-term outlook remains positive.
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Solid quarter with strong growth in asset management, lending, and insurance, though ROE was impacted by a one-off AML fine. Capital and liquidity remain robust, with new share buybacks and strong funding conditions supporting future growth.