Key Financial Indicators and Balance Sheet Analysis Q1 2023
Key results in Q1
Key results 22
Strong quarter
Return on equity
-
13.7% ROE in the quarter
-
Key medium-term targets exceeded in the first quarter
-
-
Driven by ongoing positive momentum in Core Income which
increased 18% between years
Strong liquidity and funding position and healthy deposit growth
Core operating income / REA
Insurance premium growth (YoY)
Cost-to-core income ratio
Robust capital position and prudent capital management
-
-
-
Conservative capital management in the near term given the volatile
external industry landscape following recent events in Europe and
US and the rapid change in the global and domestic interest rate
environment
Medium-term CET1 management buffer target retained but expected
to operate above these targets in the near term
Extraordinary shareholder distributions for the near term not
anticipated
CET1 ratio
¦ Dividend payout ratio³
6
Medium term targets
Q1 2023
Exceed 13%
13.7%
Exceed 6.7%
on core income
Premium growth (net of reinsurance)
to exceed the growth of the domestic
market by more than 3%1
Below 48%
on core income
150-250 bps
management buffer22
50%
6.9%
✓
11.6%
47.0%
270 bps
50% of net profit
deducted from CET1 !
Medium-term targets are reviewed annually, and the underlying horizon is up to 3 years
1 Premium growth in the domestic insurance market in 2022 was 7.5% from 2021
2 Approx.17.3-18.3% based on current capital requirements.
3 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 bufferView entire presentation