Islandsbanki hf (OISE:ISB)

Q1 2026 Islandsbanki hf Earnings Call Transcript

May 8, 2026 / 08:30 AM GMT

Release Date Price: kr147 (+0.68%)

Transcript

Key Points

Positve

Islandsbanki hf (OISE:ISB) reported a strong return on equity of 13.6% for Q1 2026, surpassing their target.
The bank achieved a cost-income ratio of 38.5%, which is well below their target, indicating efficient cost management.
Core operating income grew by 27% year-on-year, driven by higher inflation and growth in fees.
The bank's capital remains robust, with a capital ratio of 22.5%, exceeding their target of 21.1%.
Islandsbanki hf (OISE:ISB) has seen a 30% increase in deposits over the past two years, indicating strong liquidity.

Negative

High inflation rates have significantly impacted the bank's results, with 250 basis points of inflation in Q1 2026.
The economy is slowing down, and high central bank rates are affecting some borrowers, leading to potential impairments.
The housing market is facing challenges, particularly in the sale of new apartments, affecting contractors.
There is an expectation of slow loan book growth for the rest of the year, below GDP growth.
The bank is experiencing borrower-specific impairments in sectors like construction and commerce, reflecting the high rate and inflation environment.

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

ISB.IC - Islandsbanki hf
Q1 2026 Islandsbanki hf Earnings Call
May 08, 2026 / 08:30AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning everybody and welcome to Islaspanke Q1 results call.

My name is John Ommerson, CEO of Islaspanke, and with me here today is Elles Clerdersson, our CFO. We will go through the earnings and then at the end of the call, you will have an opportunity to submit verbal questions. If you have any questions during the call, you can submit those in writing also. On the on [email protected].

Now let's move over to the results.

We are presenting a very strong set of results for the first quarter with a return on equity of 13.6% and the cost income ratio also well below our target sitting at the 38.5% for the first quarter.

This is a. Heavily impacted by high inflation numbers in the first quarter. As

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