Key Financial Indicators and Balance Sheet Analysis Q1 2023
Key takeaways in Q1 2023
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Profitability
Strong core income
generation
Strong quarter with net profit of ISK 6.3bn resulting in ROE of 13.7%
Continued positive development in Core Income¹, increasing by 18.3% YoY and 1.0% from Q4 2022
Net interest income
NIM robust in evolving
market backdrop
Net interest income increases by 15.6% YoY and 4.7% from Q4 2022
Robust net interest margin of 3.1%
Loan growth in the quarter of 2.8% supported by continued solid deposit growth of 2.6%
Net commissions
Continued momentum
Net commissions again strong in the quarter at ISK 4.4bn, growing by 22.6% YoY and 9.6% from Q4 2022
All key fee generating businesses delivering strong results, especially in CIB and Asset Management
Balance sheet
Robust position
Liquidity position strong with an LCR of 174%. Average duration of liquidity bond portfolio within one year and no HTM accounting
Wholesale maturity profile light over coming year which allows for optionality in funding plans
Robust and diversified deposit base
Capital position strong with a CET1 ratio of 18.6% or 270bps above regulatory minimum
Prudent capital management near term with management buffer above medium-term target
1 Net interest income, net fee and commission income and net insurance income
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