Icelandic banks post healthy profits
Íslandsbanki is one of two Icelandic banks recently posting profits. Photo: Ómar Óskarsson
Arion Bank, one of Iceland's largest consumer and corporate banks, has posted a pre-tax profit of ISK 28.7 billion (approx. €186 million) for 2014. This is over twice the amount posted for 2013. The bank has also announced that return on equity has increased to 18.6% from 9.2% back in 2013 and that their totals assets have remained stable at ISK 933.7 billion (approx. €6.2 billion) for 2014.
Cost-cutting and growth
Another major consumer and corporate bank, Íslandsbanki, posted a similarly healthy pre-tax profit of ISK 22.8 million (approx. €152 million), a very similar figure to its 2013 profit. The banks total assets aer estimated at ISK 911 billion (approx. €6.2 billion), a 5% increase on 2013.
In a press release the CEO of Íslandsbanki, Birna Einarsdóttir, announced: "2014 was a good year for Íslandsbanki. We have been working hard to strengthen our core business with cost-cutting measures and revenue growth. These rationalisation efforts have been effective, with the costs of continuing operations falling by 2% (4% in real terms) from last year. The measures taken include merging branches, renewing supplier contracts and staff cuts of 240 since November 2011."
