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Islandsbanki hf. : 2015 Consolidated Annual Financial Statements

Profit after tax was ISK 20.6bn in FY15 compared to ISK 22.7bn in FY14. The difference is mainly due to irregular items and the appreciating Icelandic Krona.

  • Profit after tax was ISK 20.6bn in FY15 compared to ISK 22.7bn in FY14. The difference is mainly due to irregular items and the appreciating Icelandic Krona.
  • Return on equity was 10.8% in FY15, compared to 12.8% in FY14.
  • Underlining profitability rising, earnings from regular operations were ISK 16.2bn in FY15 compared to ISK 14.8bn in FY14.
  • Return on equity from regular operations on 14% CET1 was 13.2% in FY15 compared to 12.6% in FY14.
  • Net interest income amounted to ISK 28.0bn in FY15 (FY14 ISK 27.1bn). The net interest margin was 2.9% in FY15 (FY14: 3.1%).
  • Net fee and commission income was ISK 13.2bn in FY15 (FY14 11.5bn), a 15% year on year increase; thereof 6.7% was achieved in the parent company.
  • Cost to income ratio was 56.2% in FY15 (FY14: 57.7%). Cost to income-ratio excludes Bank tax and one-off cost items.
  • Loans to customers grew by 5% in the year to 665.7bn. The increase is well diversified across various lending units.
  • Total assets amounted to ISK 1,046bn (Sep15: ISK 1,004bn).
  • Deposits from customers increased by 2.1% in the last quarter to ISK 593bn.
  • The Bank issued several successful foreign denominated bond transactions during the period in NOK, SEK, and EUR
  • Total capital ratio remains strong at 30.1% (Sep15: 29.2%) and Core Tier 1 ratio was 28.3% (Sep15: 26.9%).
  • The Bank's liquidity position is strong and exceeds internal and external requirements.
  • Leverage ratio was at 18.2% at the end of the period compared to 19.5% in FY14, indicating a moderate leverage.
  • Ratio of loans more than 90 days past due and impaired was 2.2% (Sep15: 2.4% and FY14 3.5%).
  • S&P placed the Bank's BBB-/A-3 rating to a positive outlook in January 2016, but earlier in the year the Bank was upgraded to investment grade. Previously, Fitch had assigned a BBB-/F2 rating in April, but Íslandsbanki is the only Icelandic bank to have ratings from S&P and Fitch.

Birna Einarsdóttir, Chief Executive Officer at Íslandsbanki:

2015 was a successful year for Íslandsbanki, and the Bank's performance exceeded expectations. Fee and commission income grew 14.7% year-on-year and interest income by 3.3%. The Bank's core operations continued to strengthen, and the profit on regular operations grew 9.1% from the prior year. Significant changes took place in our customer service and digital channels. About 50,000 people have downloaded the Íslandsbanki app, and the number of active users rose 41% from the prior year. The successful launch of our new payment intermediation app, Kass, has helped us to provide our customers with even better service. Two of the Bank's branches merged last spring, when the new Grandi branch was opened. This autumn, three branches will merge to form a new, state-of-the-art branch in the North Tower of Smáralind shopping centre.

Íslandsbanki recently received top marks in the banking market, scoring very high on the Icelandic Customer Satisfaction Index. We are exceedingly proud of the progress we have made and are moving forward with our vision of providing the best banking services in Iceland.

During the year, Standard & Poor's upgraded the Bank's credit rating to investment-grade, and at the beginning of 2016 it revised the outlook on the rating to positive. The Bank received a BBB- rating from Fitch Ratings during the year, making it the only Icelandic bank with investment-grade ratings from both agencies.

It was announced in 2015 that Íslandsbanki would be part of Glitnir's stability contribution to the Icelandic Government. The Bank is well prepared for the sale process when its new owner decides to begin it.

Investor Presentation in Icelandic at 12.30pm

Later today at 12.30 pm Icelandic time, Birna Einarsdóttir, CEO of Íslandsbanki, and Jón Guðni Ómarsson, CFO, will present the FY2015 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 at 2pm

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

For information on Íslandsbanki's financial calendar and silent periods see

Further information: