Arion Banki Hf · OMXICE:ARION
Arion Banki Hf — Arion Bank hf. — Shareholder Meeting (March 2025)
16 slides from Arion Banki Hf's shareholder meeting presentation, Mar 12, 2025
Slide 1: Annual General Meeting of Arion Bank hf.
Aðalfundur Arion banka hf. Annual General Meeting of Arion Bank hf. Benedikt Gíslason bankastjóri / CEO 12. mars 2025 / 12 March 2025
Slide 2: The long-term roadmap for Arion
The long-term roadmap for Arion Reason for being Our strategy, operations and guidance • Our mission is to help those who want to - We've focused on a clear strategy to fulfill achieve success in Iceland and the Arctic our purpose. through smart and reliable financial solutions which enhance financi
Slide 3: Solid 13.2% ROE in 2024 and a dividend proposal of ISK 11.5 per share
Solid 13.2% ROE in 2024 and a dividend proposal of ISK 11.5 per share Ongoing track record of delivering on key financial targets Medium-term Historical performance – selected metrics 2024 targets ROE 13.2% Exceed 13% Return on Equity Cost-to-core income 47.2% Below 45% ratio1 Core income2 / REA 7.1
Slide 4: Significant capital release through dividends and share buybacks
There has been a significant capital release in recent years through both dividends and share buybacks Dividend and share buybacks since public listing 2018 Capital release (ISK bn) CET 1 capital ratio . Last 5 years - Arion Bank aims to pay 50% of net earnings .5 . Dividend 50.8 as dividends in lin
Slide 5: Creating shareholder value while contributing to public finances, depositors and creditors
Creating shareholder value while contributing to public finances, depositors and creditors Shareholders Public finances Interest paid to depositors and creditors Increasing value to our shareholders Large contributor to public finances through dividends and buybacks with total tax payment of ISK 45b
Slide 6: Are ROE targets too low in Iceland?
Are ROE targets too low in Iceland? Spread between client loans and client deposits (households and corporates) 2023 Leverage ratio 31.12.2024 % % 5% . % 0% 5 % 5 % . % 5 % 5. % 5. % 5.0% % % % % 0% % Arion Bank anske Bank B ordea B % % % % Return on equity 2024 % .5% % % . % . % % % .0% 5. % 5. % %
Slide 7: Key milestones of the year
Key milestones of the year 18.5% growth in Assets under Efficient Retail Bank Robust activity in Corporate & Management in 2024 • 71% of core products sold digitally 2024* Investment Banking Including 36% growth at Stefnir • 15.9% increase in household deposits CAGR • 60.5% increase in insurance sal
Slide 8: Ongoing digital investments increasing customer satisfaction and efficiency
Ongoing digital investments increasing customer satisfaction and efficiency Family Finances in the App Smart Self-Service for Corporates Guardians now have an automatic overview of their children’s banking products 70% +50% of deposit and savings YOY increase in custody accounts created E2E account
Slide 9: Arion Group Rewards Program
Arion Group Rewards Program - Arion has launched a new rewards program specially designed to provide value, rich benefits, and a seamless rewards experience for customers. Arion Rewards consists of two major initiatives: Product Bancassurance Rewards Refund - The program, which is designed for young
Slide 10: Women invest!
Women invest! Significant impact 2024 Why In all areas of investments women are doubling or tripling their engagement compared with men Women are underrepresented when it comes to investments and finance 8.5% increase in assets held by women in custody accounts Objective 19% increase in women regula
Slide 11: 2025 will be a pivotal year for our key development assets
We anticipate that 2025 will be a pivotal year for our key development assets Significant milestones near-term Arnarland Arnarland spans 9 hectares and encompasses 450 residential as well as some commercial properties. Arion holds a 51% stake in a portion of the project, which covers approximately 5
Slide 12: Income statement
Income statement 2024 Net interest income 2024 46,302 2023 44,685 Diff 4% - Net profit of ISK 26.1bn resulting in ROE of 13.2% Net fee and commission income 15,360 16,389 (6%) - Core income* increase by 4.6% YoY Insurance service results 2,166 152 - Net financial income 2,845 1,366 108% - Net intere
Slide 13: Net earnings bridge 2023 - 2024
Net earnings bridge 2023 - 2024 0 5 5 et earnings 0 ifference core earnings ifference other income ifference operating ifference et impairment ifference Bank levy and ifference net income from et earnings 0 expenses ncome tax assets 13 All amounts in ISK million
Slide 14: Balance sheet
Balance sheet Robust and relatively simple Assets 31.12.2024 30.09.2024 Diff. 31.12.2023 31.12.2022 31.12.2021 Cash & balances with CB 124 96 29% 102 114 69 - Loans to customers increased by ISK 9.6bn Loans to credit institutions 26 33 (22%) 29 46 30 or 0.8% in Q4 Loans to customers 1,230 1,220 1% 1
Slide 15: Going forward
Going forward Operational momentum External environment Balance sheet • Positive operational momentum • Cautious stance as to evolving • Very strong balance sheet across the Group provides external rate and economic position with ability to capture optimism for 2025 environment growth opportunities
Slide 16: Disclaimer
Disclaimer - This document has been prepared for information purposes only and should not be relied upon, or form the basis of any action or decision, by any person. Nothing in this document is, nor shall be relied on as, a promise or representation as to the future. In supplying this document, Ario