Higher total income
- Total income increased by 7.8% between years and amounted to ISK 48.5bn in 2019 mainly due to a rise in interest revenue and net fee and commissions.
- Net interest income totalled ISK 33.7bn, an increase of 5.6% from the previous year mainly due to a growth in the loan book. The net interest margin was 2.8% (2018: 2.9%). The net interest margin is expected to be slightly below 3.0% in the near to medium term.
- Net fee and commission income amounted to ISK 13.4bn, compared to ISK 12.2bn in 2018. Overall net fee income grew by 9.8% between years. This is due to higher fees and commissions from one of the Bank‘s fee generating subsidiaries and an increase in foreign exchange and securities brokerage as well as corporate advisory.
- Core income (net interest income and net fee and commission income) contributed 97% to the Bank’s total operating income in 2019. The Bank remains focused on strong core earnings and stable long-term income.
- The Bank recorded a net financial loss of ISK 817m in 2019, compared to a loss of ISK 962m in 2018. The main contributors were losses in the trading book and in investment properties.
- Other operating income totalled ISK 2.1bn in 2019, as opposed to ISK 1.8bn in 2018. This income is primarily attributed to the settlement of the Bank’s claim deriving from the acquisition of Byr savings bank in 2011. The Bank is of the opinion that it is not obliged to pay the expensed contribution from 2010 to the Depositor's and Investor's Guarantee Fund and therefore the Bank has reversed the previously expensed contribution.