Company Analysis - Commissioned /
Iceland

Arion Bank: Stronger macro good for margins and risk costs; buybacks to continue

  • The recovery in Iceland's tourism sector has helped halve the unemployment rate this year. Collateral values are rising

  • Rate hikes and the recent reinstatement of countercyclical buffer signal central bank confidence in the growth outlook

  • Including the new buy-back programme, ISK36bn could be returned to shareholders this year, c12% of current market cap

Arion Bank: Stronger macro good for margins and risk costs; buybacks to continue
Rahul Shah
Rahul Shah

Head of Financials Equity Research

Tellimer Research
8 October 2021
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