Financial and Mortgage Portfolio Overview
Strong capital position and dividend capacity
Opportunity exists to optimise capital composition and to continue consistent dividends
Highlights
Current and long-term expected
total capital requirements of
17.9% and 19.0% respectively
Additional AT1 issuance potential
of ISK 6-7bn to optimise capital
structure
Increase in REA in 2Q22 due to
strong and profitable loan growth
in 2Q22. This leads to drop in
CET1 ratio and a reduction in
excess capital
Capital ratios and leverage ratio
% of REA (% of total exposure for leverage ratio)
24.7%
25.3%
22.9%
22.5%
2.8%
2.8%
21.5%
2.8%
1.2%
2.6%
2.3%
1.1%
1.0%
13.2%
13.6%
12.4%
20.1%
12.4%
12.5%
20.6%
21.3%
18.8%
18.2%
16.5%
30.6.21
30.9.21
CET1 ratio
31.12.21
AT1
31.3.22
Tier 2
30.6.22
CET1 target
Leverage ratio
Risk exposure amount (REA)
ISKbn
69%
65%
64%
63%
63%
992
924
918
945
902
81
85
81
85
81
19
20
20
14
19
819
819
802
845
892
30/6/21
30/9/21
31/12/21
Credit risk
Market risk
31/3/22
Operational risk
30/6/22
REA/Total assets
Capital distribution plans
-
ISK 30-35bn of excess CET1 capital
Plan to optimise capital structure before year-end 2023
Distribution in the form of share buybacks or special
dividends, method and timing subject to the market
conditions
ISK 15bn of capital release planned in the coming months,
subject to market conditions
14
August-September 2022View entire presentation