Key Financial Indicators and Balance Sheet Analysis Q1 2023
Loans to customers
Growth in corporate lending in the quarter
but expected to slow
Loans to customers increased by ISK 29bn or
2.7% during the quarter
-
Loans to corporates 4.5% and loans to individuals
1.1%
Total loans increased by ISK 4.8bn due to inflation,
of which ISK 3.7bn mortgage lending. Loans.
decreased by ISK 4.3bn during the quarter due to
stronger ISK, primarily corporate loans.
Lending activity starting to slow on the mortgage
side and expected to slow on the corporate side
as the rate increases start to impact economic
activity. The Bank is agile and will continue to
view growth opportunistically considering evolving
risk/return dynamics
Share of CPI linked (indexed) products expected
to grow in current rate environment and with
recent change in legislation
Continued CIB strategy of capital velocity with
corporate loans worth ISK 4bn sold to institutional
investors during the quarter
The diversification of the corporate loan book
continues to be good and in line with the Bank's
credit strategy
18 All amounts in ISK bn
Loans to customers
Loans to customers by sector (%)
1,114
1,085
976
936
823
11.4
12.0
3.8
3.8
7.8
8.4
525
502
8.4
8.0
442
410
5.1
5.5
9.7
9.4
390
69
69
63
65
55
Other sectors
■ Finance &
Insurance
■Wholesale &
Retail
■Fishing
Construction
53.7
52.9
514
520
463
469
378
■Real Estate
activities
■Individuals
31.12.20 31.12.21
■Individ. Mortgage
31.03.22 31.12.22 31.03.23
Individ. other ■Corporate
Loan growth (%)
7.9
31.12.22
31.03.23
Loans to customers by interest rate type at year
end
530
37
11
520
82
6.1
132
■Floating
indexed
4.5
2.8
1.5
4.3
4.0
2.7
1.9
1.1
■Fixed indexed
471
155
■Floating
nominal
■Fixed nominal
150
11
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Corporates
Mortgages
■Growth Individuals
■Growth CorporatesView entire presentation