Iceland

Arion Bank: Raising forecasts – Macro recovery drives stronger top line and lower risk costs

  • Solid FY 21 result with continued pricing, efficiency and capital discipline; we raise our fair value estimate to ISK210

  • ISK31.5bn capital returned in 2021, mainly via buy-backs. The 2022 figure will be higher, with a larger dividend element

  • Price discipline and efficient cross-selling will generate 15%+ ROE even as financial income and risk costs normalise

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February 18th, 2022
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