Net earnings
25.4
Isk bn.
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Brynjólfur Bjarnason
Chairman’s address
2022 was an eventful year. At the beginning of the year restrictions on gatherings were still in force in Iceland and in many places around the world. The lifting of the restrictions early in the year signalled a new period of optimism. However, this optimism proved short-lived as Russia invaded Ukraine, bringing terrible consequences for the Ukrainian people. The economic impact of the war has been far-reaching, not least in Europe but also in the global assets markets. The effect on Iceland, with its sustainable and green energy, has thus far been more limited. The Icelandic economy was in vigorous health in 2022 despite challenging conditions on the markets. The Bank remains financially robust, with a capital ratio of 24.0% and a leverage ratio of 11.8% at year-end. The Bank’s equity was ISK 188 billion at year-end, and share buybacks and dividends to shareholders amounted to ISK 32,3 billion during the year. The CET 1 ratio was 18.8% at year-end, while the Bank’s target is 17.3-18.3%. The Bank therefore remains in good financial shape and is well placed to deal with what the future brings.
Benedikt Gíslason
CEO’s address
2022 will chiefly be remembered for the Russian invasion of Ukraine, the consequences it had for the people of that country and the economic fallout in Europe. In the wake of the conflict, historically high inflation has dogged the European economy, interest rates have soared and volatility has racked the asset markets. Iceland has in many ways been spared the effects of the conflict but we are not immune to the turbulence on the securities markets, both here in Iceland and on both sides of the Atlantic. Yet while the economic environment was challenging, Arion Bank performed solidly in 2022. The Bank reported net earnings of ISK 25.4 billion in 2022 and return on equity was 13.7%, beating the Bank’s 13% target.
In a nutshell
Net earnings
Operating income
57.2
Isk. bn
Return on equity
13.7%
Assets under management
1,298
Isk. bn.
Insurance
65,000
customers
Loans to
customers
1,085
Isk. bn.
Sustainability
The Bank’s customers, shareholders, our human resources and society as a whole are of utmost importance to us. We place a strong emphasis on good corporate governance and effective internal controls.
Arion Bank wants to act as a role model by promoting responsible and profitable business practices, which take into account the environment, the economy and the society in which we work.
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Average length of employment at Arion Bank is approximately
10 years
Total committed green finance amounts to
151.5
ISK bn.
Pay equity analysis indicates
0.4%
unexplained gender pay gap
Reduction of GHG emissions from own activities
55.6%
since 2015
* greenhouse gases – scope 1 and 2
Employees guaranteed up to
80%
of salary during parental leave
The bank’s financed emissions totalled
279.4 ktCO2e
according to calculations of lending and investment in 2021
We offer smart solutions
Digital loans
Car loans almost 100% digital
Process for applying and paying out car loans almost 100% digital. Consumer loans, overdrafts and mortgage application process and credit assessment is 100% digital.
Best banking app
Best banking app six years in a row
The Arion app was named the best banking app for the 6th year in a row in a survey conducted by MMR. The app now has more than 100,000 active users.
Vörður tryggingar
Insurance in the Arion app
All Vörður’s main insurance policies for individuals are now available in the Arion app, both comprehensive insurance packages and individual policies.