Key Financial Indicators and Balance Sheet Analysis Q1 2023 slide image

Key Financial Indicators and Balance Sheet Analysis Q1 2023

The Bank received strong ESG ratings and the green asset pool grew by 16% in 2022 The Bank will continue to focus on sustainability in its operations and measure its impact. We aim to raise the ratio of green lending to 20% of the Bank's total loan portfolio by 2030 in line with our green financing framework. MORNINGSTAR SUSTAINALYTICS ESG INDUSTRY TOP RATED 2023 Sustainalytics places Arion Bank in the top 6th percentile of banks (around 1,000 banks globally) and the top 4th percentile of regional banks (around 400 banks). On a scale of 0-100, Arion Bank received 12 points, with fewer points signifying lower risk which places the Bank in the low-risk category. Reitun Arion Bank has achieved the score "outstanding" in Reitun's ESG rating, scoring 90 out of 100 possible points and placing it in category A3. The rating is based on the Bank's performance in environmental, social and governance (ESG) issues in its operations. This is the third year in row the Bank has achieved this score. Diversified pool of eligible green assets (total ISK 151bn) at YE 2022 14% Energy efficency 4% Pollution precention and control 3% Clean transportation Green bonds represent 24.7% of borrowings Arion Bank's emissions from loan portfolio in 2021 25 Fishing industry 9% Other sectors 2% Wholesale and retail trades 3% Transportation 9% Real estate and construction 3% Motor vehicle ✓ PCAF 4% Agriculture 28% Partnership for Carbon Accounting Financials Residential mortgages 0,4% Industry, energy and manufacturing 42% The Bank's total financed emissions in 2021 was 279.4ktCO₂e 92.5% of total loan portfolio has been measured Green deposits (ISK bn) 5 8 21 2020 2021 2022 36% Sustainable fishery and aquaculture 24.7% 43% Green buildings Green assets represent 12.5% of the Bank's loan book 12.5% O
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