Attention

This news is more than six months old

Positive profit warning for the fourth quarter 2021

The preliminary financial results for 4Q21 indicate a net profit of approximately ISK 7.1bn, with an annualised return on equity of around 14.2%,


The preliminary financial results for 4Q21 indicate a net profit of approximately ISK 7.1bn, with an annualised return on equity of around 14.2%, compared with the average analyst consensus of ISK 5.0bn in net profit and 9.9% return on equity (see here). The results are therefore considerably above the Bank´s ROE target and analyst consensus. The Bank’s net profit after tax for 4Q20 was ISK 3.5bn with a 7.6% annualised return on equity.

According to the preliminary numbers, total operating income for 4Q21 was approximately ISK 13.1bn, an 8.8% increase from 4Q20. Thereof, net interest income was ISK 8.6bn, net fee and commission income ISK 3.7bn and net financial income ISK 0.7bn. Total operating expenses for the quarter were approximately ISK 6.3bn compared to ISK 6.6bn in 4Q20.

The deviation from the analyst consensus, for the quarter, is mainly explained by ISK 1.1bn profit from discontinued operations and ISK 0.6bn of positive net impairment of financial assets, mostly due to a more favourable outlook for loan exposures in the tourism sector. For comparison the net impairment charge of approximately ISK 1.8bn in 4Q20 was mainly due to the uncertainty related to the COVID-19 pandemic at that time.

The fourth quarter 2021 financial results and related investor material are still being finalised and the aforementioned numbers are therefore subject to change. The 4Q21 financial results will be published on 10 February 2022.

Contact us


Margrét Lilja Hrafnkelsdóttir

Investor Relations


Send email
844 4033

Björn Berg Gunnarsson

Public Relations


Send email
+354 8444869