Net earnings
28.6
ISK bn.
Brynjólfur Bjarnason
Chairman's address
The year 2021 was an excellent 12 months for Arion Bank. Despite the challenges posed by the global pandemic, the Icelandic economy thrived during the year and Arion Bank felt the positive impact. The Bank’s loan portfolio grew 14% during the year and amounted to ISK 936 billion at year-end. The Bank remains financially robust, with a capital ratio of 23.8% and a leverage ratio of 12.6% at year-end. The Bank’s equity was ISK 194 billion and share buybacks and dividends to shareholders amounted to ISK 31.5 billion during the year. The CET 1 ratio was 19.6% at year-end, while the Bank’s target is 17%. The Bank is thus in a strong position and has the capacity to release further capital in the form of dividends and buybacks.
Benedikt Gíslason
CEO's address
The year 2021 showed quite clearly how the Bank’s interests are inextricably linked to those of our customers. When the Bank’s customers are prospering, then the Bank is prospering. Arion Bank engaged in numerous exciting projects with our customers this year. Business flourished on both the advisory and lending sides. It was a record year in terms of mortgage lending to retail customers, who were highly active on the property market. The Bank hit all its key operating targets during the year. We reported net earnings of ISK 28.6 billion and return on equity was 14.7% which was well above our targets.
In a nutshell
Operating income
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58.2
ISK bn.
Return on equity
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14.7%
Loans to customers
.png)
936
ISK bn.
Assets under management
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1,352
ISK bn.
Insurance
64,000
Customers
We offer smart solutions
%20(1).png)
94,000
active app users
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33,000,000
app logins
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72%
of sales transactions through
digital channels
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5 years
in a row best banking app
in Iceland in a survey by MMR
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135,000
automatic loan decisions
94%
of credit assessments
performed digitally
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Sustainability
Our customers, shareholders and human resources are at the heart of our business. We place great importance on good corporate governance and effective internal controls. Arion Bank wants to act as a role model by promoting responsible and profitable business practices, which take into account the environment, the economy and the society in which we work.
Sustainability
Employees are guaranteed close to
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80%
of their salaries during parental leave
Average length of employ-ment at Arion Bank is close to
.png)
11 years
Results of equal pay analysis showed
.png)
0.1%
difference between total salaries to men and women for equally valuable jobs
Total allocation of
green financing
%20(1).png)
129.9
ISK billion
Emissions of greenhouse gases avoided
.png)
12,680
tCO2Í
estimated greenhouse gases avoided in 2021 due to green financing
Reduction in total greenhouse gas emissions from own activities of
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37.6%
since 2015
News in 2021
17.02.2021
Reports published by Arion Bank for 2020
Arion Bank has published its Annual and Sustainability Report and Pillar 3 Risk Disclosures for 2020.
19.04.2021
All our services available again
We thank you for your patience and understanding over the weekend when our services were disrupted due to the launch of a new payment and deposits system.
05.05.2021
Arion Bank’s Q1 2021 financial results
Arion Bank reported net earnings of ISK 6,039 million in the first quarter with 12.5% return on equity. Return on equity, assuming 17% CET1 ratio, was 16.0% for the quarter.
25.06.2021
Fly Play hf.: Eight-fold subscription in Fly Play hf.‘s share offering
A very successful share offering by Play finished today, Friday 25 June 2021, at 16.00.
01.07.2021
Rapyd Agrees to Acquire Valitor for USD 100 million
Rapyd Agrees to Acquire Valitor for USD 100 million
07.07.2021
Arion Bank issues inaugural €300 million Green Bond
On Wednesday 7 July, Arion Bank issued a new 4 year senior unsecured green bond for a total of €300 million. This was the first green bond from Arion Bank.
25.08.2021
Arion Bank, Vörður and Stefnir recognised for excellence in corporate governance
On Friday Arion Bank, Vörður and Stefnir were recognised as companies which had excelled in terms of corporate governance.
06.10.2021
Arion Bank employees guaranteed 80% of salary during parental leave
For many years Arion Bank has placed great importance on equality in all areas of its business. The main emphasis in recent years has been on ensuring that people are paid equal salaries for equally valuable jobs.
27.10.2021
Arion Bank's Q3 2021 financial results
Arion Bank reported net earnings of ISK 8,238 million in the third quarter with 17.0% return on equity. Return on equity, assuming 17% CET1 ratio, was 21.8% for the quarter.
02.12.2021
Reitun gives Arion Bank outstanding ESG rating
Arion Bank has achieved an outstanding score in Reitun’s ESG rating. The Bank gained the highest score, a feat achieved by only one other issuer, or 90 points out of a possible 100 and is placed in category A3.
20.12.2021
Green deposits incorporated in Arion Bank’s Green Financing Framework
In 2020 Arion Bank announced the launch of a new green deposit account, called Green Deposits, the first Icelandic bank to offer such an account.
29.12.2021
Arion Bank and CEO Benedikt Gíslason recipients of 2021 business awards
Icelandic business media Viðskiptablaðið / Frjáls verslun today announced that Arion Bank and CEO Benedikt Gíslason are the recipients of its 2021 business awards.
10.02.2021
Arion Bank’s financial results for Q4 2020 and for the year 2020
Arion Bank reported net earnings of ISK 8,110 million from continuing operations in the fourth quarter and ISK 16,747 million from continuing operations during the year.
16.04.2021
Impact analysis of Arion Bank’s Green Deposits
In 2020 Arion Bank announced the launch of a new green deposit account, called Green Deposits, the first Icelandic bank to offer such an account.
29.04.2021
Code of conduct for suppliers
According to Arion Bank’s Environment and Climate Policy the Bank requires its suppliers to take into account the environmental and climate impact of their activities.
14.06.2021
Share Offerings of Fly Play hf.
The subscription period for the share offerings of Fly Play hf. will commence at 10:00 GMT, Thursday 24 June 2021 and end at 16:00 GMT, Friday 25 June 2021.
30.06.2021
Solid Clouds IPO four times oversubscribed
Today, 30 June 2021 at 16:00, the public offering of new shares in Solid Clouds hf. was successfully closed with a total demand of ISK 2.8bn from just under 2,700 investors, resulting in multiple oversubscription amid overwhelming interest.
02.07.2021
Arion Bank publishes a Green Financing Framework
Arion Bank has published a Green Financing Framework which applies to the Bank’s funding and lending activities.
28.07.2021
Arion Bank’s Q2 2021 financial results
Arion Bank reported net earnings of ISK 7,816 million in the second quarter with 16.3% return on equity. Return on equity, assuming 17% CET1 ratio, was 21.3% for the quarter.
06.09.2021
Changes in the executive committee and organization of Arion Bank - CFO Stefán Pétursson leaves the Bank
Changes in the executive committee and organization of Arion Bank are taking effect today. Two new managing directors are joining the Bank’s executive committee and a new division, Customer Experience, has been created.
15.10.2021
Arion Bank and Vörður receive the Equality Scale Award for the second successive year
Arion Bank and Vörður have recently received the FKA Equality Scale Award. A total of 38 companies, seven local authorities and 8 public sector bodies were recognized this year and also received the Equality Scale gold symbol.
16.11.2021
Arion Bank joins PCAF
Arion Bank has recently joined the Partnership for Carbon Accounting Financials (PCAF), a global partnership of financial institutions that work together to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments.
06.12.2021
The Banker names Arion Bank as 2021 Bank of the Year in Iceland
The Banker magazine, a leading global finance news publication published by the Financial Times, has named Arion Bank as the Bank of the Year in Iceland for 2021.
21.12.2021
Arion Bank issues green bonds in Icelandic krónur
On 16 December 2021 Arion Bank completed an offering of green bonds in a new series ARION 26 1222 GB in the amount of ISK 3,640 million.
10.02.2021
Arion Bank’s financial results for Q4 2020 and for the year 2020
Arion Bank reported net earnings of ISK 8,110 million from continuing operations in the fourth quarter and ISK 16,747 million from continuing operations during the year.
16.04.2021
Impact analysis of Arion Bank’s Green Deposits
In 2020 Arion Bank announced the launch of a new green deposit account, called Green Deposits, the first Icelandic bank to offer such an account.
29.04.2021
Code of conduct for suppliers
According to Arion Bank’s Environment and Climate Policy the Bank requires its suppliers to take into account the environmental and climate impact of their activities.
14.06.2021
Share Offerings of Fly Play hf.
The subscription period for the share offerings of Fly Play hf. will commence at 10:00 GMT, Thursday 24 June 2021 and end at 16:00 GMT, Friday 25 June 2021.
30.06.2021
Solid Clouds IPO four times oversubscribed
Today, 30 June 2021 at 16:00, the public offering of new shares in Solid Clouds hf. was successfully closed with a total demand of ISK 2.8bn from just under 2,700 investors, resulting in multiple oversubscription amid overwhelming interest.
02.07.2021
Arion Bank publishes a Green Financing Framework
Arion Bank has published a Green Financing Framework which applies to the Bank’s funding and lending activities.
28.07.2021
Arion Bank’s Q2 2021 financial results
Arion Bank reported net earnings of ISK 7,816 million in the second quarter with 16.3% return on equity. Return on equity, assuming 17% CET1 ratio, was 21.3% for the quarter.
06.09.2021
Changes in the executive committee and organization of Arion Bank - CFO Stefán Pétursson leaves the Bank
Changes in the executive committee and organization of Arion Bank are taking effect today. Two new managing directors are joining the Bank’s executive committee and a new division, Customer Experience, has been created.
15.10.2021
Arion Bank and Vörður receive the Equality Scale Award for the second successive year
Arion Bank and Vörður have recently received the FKA Equality Scale Award. A total of 38 companies, seven local authorities and 8 public sector bodies were recognized this year and also received the Equality Scale gold symbol.
16.11.2021
Arion Bank joins PCAF
Arion Bank has recently joined the Partnership for Carbon Accounting Financials (PCAF), a global partnership of financial institutions that work together to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments.
06.12.2021
The Banker names Arion Bank as 2021 Bank of the Year in Iceland
The Banker magazine, a leading global finance news publication published by the Financial Times, has named Arion Bank as the Bank of the Year in Iceland for 2021.
21.12.2021
Arion Bank issues green bonds in Icelandic krónur
On 16 December 2021 Arion Bank completed an offering of green bonds in a new series ARION 26 1222 GB in the amount of ISK 3,640 million.