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Investor Presentaiton

12 Income statement Q1 2020 • Earnings from continued operations are negative due to the effects of Covid-19 The 2% reduction in NII derives from smaller loan book in line with strategy Strong performance in net commission income in most sectors Turmoil in equity markets due to Covid-19 drive NFI down Salaries decreased from Q1 2019 as the Bank has reduced the number of FTE'S The bank levy has been lowered from 0.376% to 0.145% Increase in net impairment mostly due to more negative assumptions in IFRS 9 models Unfavorable effective income tax rate due to negative income from equity holdings HFS assets, mainly Valitor and TravelCo are also affected by Covid-19 Net interest income Net commission income Net insurance income Net financial (loss) income Share of (loss) profit of associates Other operating income Operating income Salaries and related expenses Other operating expenses Operating expenses Bank levy Net impairment Earnings loss before income tax Income tax expense Net earnings / loss from continuing operation Discontinued operations, net of tax Net earnings/loss All amounts in ISK million Q1 2020 Q1 2019 Diff% Q4 2019 Diff% 7,253 7,434 (2%) 7,693 (6%) 3,076 2,218 39% 2,615 18% 501 253 98% 723 (31%) (2,000) 766 489 (24) 727 6 170 310 (45%) 200 (15%) 8,976 11,708 (3,130) (3,630) (860) (1,282) (889) (2,171) (23%) 11,726 (14%) (3,077) (3,232) (5%) (3,367) (6,207) (6,862) (10%) (6,443) (331) (906) (63%) (2,860) (1,081) 165% (422) 2,859 (115%) (622) 2,237 (157%) (1,219) 1,018 (23%) (3,076) 2% (9%) (4%) (357) (7%) 1,203 6,129 38% (923) (7%) 5,206 (125%) (27%) (7,981) (89%) (313%) (2,775) (22%) *
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