Key Financial Indicators and Balance Sheet Analysis Q1 2023
Net financial income
Improving market conditions support results
Net financial income (ISK m)
Solid performance both in equity and bond
holdings
Bond holdings fluctuate between quarters in line
with changes in liquidity management
No held-to-maturity (HTM) accounting within bond
portfolio, with all market value changes
incorporated in capital position
Average duration of total ISK 123bn portfolio is 203
days, 98 days for ISK 77bn FX bond portfolio and
388 days for ISK 46bn portfolio
Total investment portfolio of Vördur is ISK
26.3bn; ISK 18.5bn of bonds and ISK 7.8bn in
equity instruments, yielding a profit of ISK 722m in
the quarter
Equity holdings in the market making business
vary between quarters, increased slightly from
year end 2022 to ISK 2.2bn
Active reduction of unlisted equity holdings and
expected to continue near term
15 All amounts in ISK bn
Bond holdings
991
427
564
839
157.2
151.7
148.3
722
14.6
138.2
157
16.0
18.5
146
117
17.5
(802)
11
106.0
51.4
76.5
46.6
(1,966)
16.6
43.8
(530)
(1,332)
(945)
(2,911)
50.7
82.4
77.1
72.4
60.8
32.8
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
5.3
1.9
5.9
31.12.20 31.12.21 31.03.22
4.5
6.1
31.12.22 31.03.23
■Arion Bank and other subs.
■ Vördur
■Market making
FX
ISK
■ Vördur
Net financial income by type Q1 2023 (ISK m)
Equity holdings
26.7
25.1
8.7
18.6
8.8
17.8
17.2
2.3
6.7
2.0
7.8
7.8
0.8
7.4
425
336
9.4
0.7
0.2
4.5
2.2
6.1
5.8
2.7
2.2
6.1
1.5
1.2
3.9
74
4
2.7
1.7
2.2
Equity
holdings
Bond
holdings
Derivatives and FX difference
31.12.20
31.12.21
31.03.22 31.12.22 31.03.23
hedge
■Market making
Listed
accounting
■ Unlisted
■ Unlisted bond funds
■ VördurView entire presentation