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Islandsbanki hf. : 2014 Consolidated Financial Statements

Profit after tax was ISK 22.8bn in 2014 compared to ISK 23.1bn in 2013.


FY 2014

  • Profit after tax was ISK 22.8bn in 2014 compared to ISK 23.1bn in 2013
  • Return on equity was 12.8% in 2014 compared to 14.7% in 2013. Healthy return despite growing equity base.
  • Total capital ratio remains strong at 29.6% (YE13 28.4%) and Core Tier 1 ratio was 26.5% (YE13: 25.1%)
  • Net interest income amounted to ISK 27.1bn in 2014 (YE13 ISK 28.4bn), a decrease of 4.7%. The net interest margin was 3.0% in 2014 (2013: 3.4%) and is now at expected long term level.
  • Net fee and commission income was ISK 11.5bn in 2014 (YE13: 10.4bn). This is an YoY increase of 10% and mainly attributable to Retail and fee generating subsidiaries.
  • Cost to income ratio was 57.7% in 2014 (YE13: 58.5%). Cost to income-ratio excludes Bank tax and one-off cost items.
  • LPA ratio was 5.9% (YE13: 8%) and remaining cases are small and will each only move the ratio marginally. Ratio of loans more than 90 days past due was 2.5% (YE13: 4%).
  • Total assets amounted to ISK 911bn (Dec13: ISK 866bn).


  • Profit after tax was ISK 4.6bn in 4Q14 (4Q13: ISK 7.7bn).
  • Return on equity was 9.9% in the quarter (4Q13 19.5%).
  • Net interest income amounted to ISK 6.5bn in 4Q14 (4Q13 ISK 6.5bn).
  • Net fee and commission income was ISK 3.0bn in 4Q14 (4Q13: ISK 2.8bn) a 4% increase.

Birna Einarsdóttir, Chief Executive Officer at Íslandsbanki:

'2014 was a good year for Íslandsbanki. We strengthened our core operations by increasing efficiency and enhancing revenue growth. Efforts to streamline the business lines have been effective with the cost from regular operations falling by 2% year on year, which is about 4% in real terms. Amongst the measures that have been taken are the merging of branches, the renegotiation of supplier contracts and a reduction in the number of employees, indeed 240 fewer than November 2011
Good progress has been made in diversifying the Bank's funding with Íslandsbanki now the largest issuer of covered bonds in Iceland. Íslandsbanki was also the first Icelandic bank to issue a Euro- denominated bond, and the outstanding SEK bond was tapped. 

The Bank's performance has attracted attention abroad with both Euromoney and The Banker awarding Íslandsbanki as the best bank in Iceland. In addition, the Bank received the highest rank of any credit institutions in the Icelandic customer satisfaction survey. This momentum has resulted in an increased market share for the Bank with the largest growth in lending since its establishment. New lending amounted to ISK 165 billion, a 80% increase on the previous year. Customer satisfaction is an essential part of a successful business, and the Bank continues to focus on providing an excellent service.'

Investor meeting at Kirkjusandur

Later today at 16 pm, Birna Einarsdóttir, CEO of Íslandsbanki, and Jón Guðni Ómarsson, CFO, will present the financial results to market participants, followed by a Q&A session. The meeting is conducted in Icelandic and held at the Bank's headquarters at Kirkjusandur.

Registration to the investor meeting at Kirkjusandur.

Investor call in English

The Bank will also host an investor call in English to present the results at 2 pm Icelandic time. The call will start with a short macro update on the Icelandic economy, followed by a review of the financial results and Q&A. Please register by replying to Dial-in details and presentation will be sent out two hours prior to the call.

All presentation material will subsequently be available and archived on

Further information: