Arion Bank reports net earnings of ISK 8.3bn in Q4 2024 and ISK 26.1bn for the full-year 2024. Investor meeting and webcast in English on 13 February at 9:30 CET (8:30 GMT)
Financial highlights for the fourth quarter 2024
Financial highlights for the year 2024
Benedikt Gíslason, CEO of Arion Bank
“The financial results for 2024 were consistent with our targets and delivered a return on equity of 13.2%. Core income matched expectations and the fact that the stock markets and bond markets rallied in the second half of the year had a positive impact on financial income. Arion Bank remains financially robust, and the capital ratio and CET1 ratio are well above the requirements made by the Financial Supervisory Authority of the Central Bank of Iceland and Icelandic law. The Bank’s liquidity position is also strong and comfortably above regulatory requirements. The board of directors of Arion Bank will propose at the AGM on 12 March that a dividend be paid amounting to ISK 11.5 a share.
It was an eventful year in many respects for Arion Group, which is formed by Arion Bank, the insurance company Vörður and the fund management company Stefnir. Vörður opened four new branches in shared offices with Arion Bank, two in the capital city area, one in Stykkishólmur and another in Egilsstaðir. These complement the two existing branches shared by Vörður and Arion in Selfoss and Akureyri. We want customers who use a wide range of services from Arion to feel the full benefit of doing business with a one-stop shop. This is why we have launched Arion Refund, which enables Arion Bank customers who are insured by Vörður to get a 5% refund on their insurance premiums if they are claims free for 12 months. We also revamped our Premía service which is a tailored and personal service for our high-volume customers. We will also shortly be launching a new rewards scheme for customers of all three companies.
During the year, Arion Bank negotiated a credit facility with the European Investment Fund (EIF). The agreement enables us to lend ISK 15bn to SMEs with a guarantee from the EIF. The goal is to support innovation in sustainability and environmental projects, the digitalization of society and culture.
The diversity of our services is one of Arion’s key strengths. Not only do we have the most varied financial service offering in the country, but these services are almost entirely available in the Arion app, which was voted the best banking app by customers for the eighth year in row. The year saw the release of innovative digital solutions designed for families and companies. It is now possible for users to view account statements of children and spouses, open accounts for children and to invest in funds on their behalf. We also brought out sophisticated card solutions for companies which allow users to take a photo of a receipt and attach it to the card transaction statement and to manage credit card limits easily and securely.
During the year we reached a milestone when assets under management at the Group, i.e. Arion Bank’s Capital Markets division and Stefnir, crossed the ISK 1,600bn mark, exceeding the Group’s balance sheet for the first time. Stefnir also led the acquisition by pension funds of Ívera, through the fund SRE III, which owns 1,900 properties rented to the public on long-term leases. The investment marked a new beginning for Icelandic pension funds on the real estate market.
However, one of our proudest achievements at Arion during the year was the launching of the Women Invest campaign last January. More than 4,000 women attended 45 events we arranged on finance and business throughout the country. This vital campaign has been a big hit and is designed to get more women involved in the financial markets. Women have been at a disadvantage in this area but things are starting to move in the right direction, and assets in portfolios owned by women have grown at the three times the rate of those owned by men. Fund subscriptions by women also increased at double the rate of men. It’s a long-term initiative to which we are fully committed.”
Investor meeting / webcast in English on 13 February at 9:30 CET (8:30 GMT)
Arion Bank will be hosting a meeting at the Bank’s headquarters in Borgartún 19, Reykjavík, on Thursday 13 February at 9:30 CET (8:30 GMT) where CEO Benedikt Gíslason and CFO Ólafur Hrafn Höskuldsson will present the results and Chief Economist Erna Björg Sverrisdóttir will give an update on the economic environment. The meeting will take place in English and will also be streamed live.
The webcast will be accessible live on Lumiconnect and a link is also available on the Bank’s website under Investor Relations.
Financial calendar
Arion Bank’s financial calendar is available on the Bank’s website.