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Preliminary financial results for the third quarter 2021 show a net profit of ISK 7.6bn with annualised return on equity of 15.7% - considerably above the Bank´s financial targets and analyst consensus

The preliminary financial results for 3Q21 indicate a net profit of approximately ISK 7.6bn, with annualised return on equity of around 15.7%, compared with average analyst consensus of ISK 4.6bn net profit (see here). The Bank’s net profit for 3Q20 was ISK 3.4bn with 7.4% annualised return on equity.

Total operating income for 3Q21 was approximately ISK 13.3bn, a 20.6% increase from 3Q20. Thereof, net interest income was ISK 8.8bn, net fee and commission income was ISK 3.4bn and net financial income ISK 0.9bn. The positive impact from net financial income is mainly explained by a positive value change in unlisted equity instruments. Operating expenses for the quarter were approximately ISK 5.7bn compared to ISK 5.6bn in 3Q20.

The deviation between years and from the Bank’s financial targets is mainly explained by an ISK 1.8bn positive net impairment of financial assets in 3Q21 mostly due to a brighter outlook for the tourism industry and reduced impairments on loans to individuals resulting from an updated risk assessment model. For comparison the net impairment charge of approximately ISK 1.1bn in 3Q20 was mainly due to the uncertainty related to the COVID-19 pandemic at that time.

The third quarter 2021 financial results and investor presentation are still being finalised and the aforementioned numbers are therefore subject to change. The financial results will be published on 28 October 2021.

For fur­ther inform­a­tion:

Mar­grét Lilja Hrafnkels­dót­tir

Investor Relations

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844 4033

Björn Berg Gun­narsson


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844 4869