The presentation at Arion CMD 2024 covered the Bank’s strategy, key tasks and operating environment, focuses in the Bank’s funding and capital structure, the Bank’s credit ratings, the progress of development projects, the financial outlook and updated financial targets.
Arion Bank operates according to clear financial targets which the Bank releases publicly. The Bank’s financial targets were updated during the first quarter of 2024 and apply for the next three years.
Target | |
|---|---|
Return on equity | Exceed 13% |
Core income / REA | Exceed 7.2% |
Cost-to-core income ratio | Below 45% |
CET1 ratio above regulatory | 150-250 bps management buffer |
Insurance revenue growth | Insurance revenue growth of Vörður in excess of market growth |
Insurance combined ratio of Vörður | Below 95% |
Dividend payout ratio* | 50% |
*Pay-out ratio of approximately 50% of net earnings attributable to shareholders through either dividends or buyback of the Bank’s shares or a combination of both. Additional distributions will be considered when Arion Bank’s capital levels are above the minimum requirements set by the regulators in addition to the Bank’s management buffer.
The information set out above is provided for information purposes only and is not intended to serve as a basis for any decision or action by the recipient. Information regarding the Bank's financial targets and future outlook can be based on assumptions and market conditions that may change without notice. Accordingly, it does not constitute a promise, forecast or guarantee of future performance. There can therefore be no assurance that the Bank's targets or future outlook will be achieved. Arion bank accepts no liability for the information, assumptions or conclusions presented herein, or for any information provided in connection therefore. Arion bank undertakes no obligation to update the information on this page to reflect events or circumstances arising after its publication, except where required by applicable laws or regulations. Arion bank shall not be liable for any loss or damage, whether direct or indirect, arising from the use of the information set out above.