Arion banki hf (FRA:AB7A)

Q1 2025 Arion banki hf Earnings Call Transcript

May 8, 2025 / 08:30 AM GMT

Release Date Price: €1.05 (+3.98%)

Transcript

Key Points

Positve

Arion banki hf (OISE:ARION) reported a solid start to the year with a return on equity of 12.8%.
The bank achieved a stable net interest margin of 3.1% despite a complicated external rate environment.
Core income, including net interest, fee, and insurance revenues, increased by 15.4% year-over-year.
The bank's funding and liquidity position remains strong, with effective pre-funding of most non-ISK funding plans for the year.
A new 3 billion share buyback program was launched following a successful completion of a previous program in Q1.

Negative

Financial income was negatively impacted by challenging equity markets, resulting in a loss for the investment business.
The effective tax rate was high at 32% due to non-deductible losses in equity holdings.
The problem loans ratio increased, mainly due to exposures in the construction sector affected by elevated funding costs.
Tourism faced challenges with a 9% decrease in tourist arrivals in Q1, impacting the sector's outlook.
Unemployment has inched upwards, with a forecasted average of 4.4% for the year, indicating a slowdown in job growth.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ARION.IC - Arion banki hf
Q1 2025 Arion banki hf Earnings Call
May 08, 2025 / 08:30AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and thank you all for joining us today for the presentation of our quarterly results.

Before I begin, I want to acknowledge, the absence of our CFO, Oliver Huskelson, who is currently away due to medical reasons.

We of course wish him a swift recovery and look forward to his return.

In his in his absence, I will TRY to provide a comprehensive overview of our performance this quarter, and our chief economist Edna Berksdotter will reflect on the external environment.

But first, let's dive into the results.

This was a solid start of the year with the return equity of 12.8%, and the results, are underpinned by good momentum in our core earnings with a strong, period in terms of feed

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