Arion Bank hosts today, 1 March, from 9:00 am until 12:30 GMT its Capital Markets Day at the Bank’s headquarters in Iceland. The meeting will also be streamed live. Breakfast reception starts at 8:30.
The event will be led by CEO Benedikt Gíslason along with members of the management team of the Arion Bank Group.
Information about the event and registration is here
The presentation (PDF) is available here
Presentation includes:
- Strategic direction and operational landscape of the Group
- Funding and capital guidance
- Information on ongoing strategic review regarding Arion’s optimal credit rating coverage. This includes a review of the appropriate number of credit rating agencies going forward. The result of this review is expected in the near term and will be disclosed when appropriate
- Progression of development projects owned by Landey
- Financial outlook and updated medium-term targets
Medium term targets
| Target | Change |
| Return on equity | Exceed 13% | Unchanged |
| Core income / REA | Exceed 7.2% | Revised from 6.7% |
| Cost-to-core income ratio | Below 45% | Revised from 48% |
| CET1 ratio above regulatory capital requirements | 150-250 bps management buffer | Unchanged |
| Insurance revenue growth | Exceed the growth of the domestic market by more than 3 percentage points | Unchanged target but changed wording in line with IFRS 17 |
| Insurance combined ratio of Vörður | Below 95% | New target |
| Dividend payout ratio* | 50% | Unchanged |
* 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.