Investor Presentaiton
14
Net fee and commission and net insurance income
Steady positive trends in both fee and insurance based operations
Net fee and commission income
Net insurance income
0.8
1.1
3.1
0.7
2.6
2.6
0.4
2.5
2.2
0.4
0.3
0.3
0.3
0.3
0.3
0.4
0.4
109.6%
0.3
0.5
35
1.0
0.4
0.5
0.7
94.4%
0.5
103.5%
89.0%
80.0%
0.3
0.5
0.4
0.4
0.4
0.3
0.8
0.9
0.9
0.9
0.9
Q1 2019 Q2 2019
Q3 2019
Q4 2019 Q1 2020
■Cards and payment solution
■Lending and guarantees
Collection and payment services
■Cap. markets and corporate finance
■Asset management
Income from lending and guarantees exceptionally strong, mainly driven by
prepayment of loans and the service agreement with HFF
Increase in cards and payment solutions from Q1 2019 mainly due to one-off
payment from VISA. Covid-19 has however already had a negative effect on cards
and is likely to do so even further in Q2
Income from asset management is very stable. Assets under management were
ISK 999 billion at 31 March, reducing slightly from YE 2019
Revised strategy is meant to underpin increased fee and commission income
going forward
All amounts in ISK million
Q1 2019
Q2 2019
Q3 2019 Q4 2019
Q1 2020
Combined ratio (%)
Strong quarter compared to Q1 2019 as Net insurance income increased by 98%
YoY. Decrease from Q4 due to seasonality in non-life insurance
-
Premiums increased by 8% while claim rate decreased, partly due to Covid-19
from end of February
Volatility in non-life, often affected by weather conditions over the winter
Combined ratio of 103.5% in Q1 is competitive in the domestic market
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