Net earnings
ISK 26.1
billion
Arion Bank’s Annual and Sustainability Report contains an overview of the performance of Arion Group in 2024, its main areas of operations, key financials and in-depth coverage of sustainability. In addition, Arion has published Pillar 3 Risk Disclosures and the Annual Financial Statement.
Arion Bank’s role is to help people who want to achieve success in Iceland and the Arctic through smart and reliable financial solutions which enhance financial health and create sustainable value.
.jpg)
“We’re living in exciting times”
It’s fair to say that Arion Group has been a driving force in Icelandic society in 2024. The Bank and its subsidiaries all performed well despite certain challenges in the environment, both at home and abroad. Volcanic activity in south-west Iceland and high inflation left their mark on the Icelandic economy, while political upheaval globally, as more than 60 countries elected new leaders, also had its say. International conflict and rapid technological advances, particularly in artificial intelligence, continued to fuel uncertainty, including in the financial services sector.
In the 2024 Annual and Sustainability Report we talk to CEO Benedikt Gislason and Board Chairman Paul Horner and look back over what has been achieved and look ahead to the Group’s next tasks. Both are passionate about making sure that the Icelandic financial system remains an active topic of debate since it touches everyone in the country.
A good year behind us
Arion Group has set itself clear financial targets which are released publicly. Arion performed well in key respects in 2024, and the Bank reached its target of return on equity above 13%. In addition, the Bank its divisions, subsidiaries and the Group’s employees work in accordance with diverse targets. Many of them are integral to the companies’ incentive schemes, and the employees can monitor how these targets develop throughout the year.
AuM at Arion Group
ISK 1,633
billion
Operating income
ISK 66.5
billion
Sustainable loans
15.5%
of the Bank’s total loans
Insurance revenue of Vörður
ISK 19.7
billion
Result of pay equity analysis
0.4%
unexplained gender pay gap
Loans to customers
ISK 1,230
billion
Return on equity
13.2%
FTEs
858
AuM at Stefnir
ISK 336
billion
Comprehensive sustainability reporting
The 2024 Annual and Sustainability Report contains information on human resources, environment and climate issues, financed emissions, sustainable finance and sustainable accounts in accordance with GRI Standards and the Nasdaq ESG Reporting Guide. The Bank has begun to implement the European Sustainability Reporting Standard (ESRS), and the increased level of reporting in accordance with ESRS applies to the whole Group.
Sustainability legislation incorporating the EU Taxonomy came into effect in Iceland in 2023. Information disclosed in accordance with the EU Taxonomy is published in an annex to the consolidated financial statements.
Pillar 3 Risk Disclosures 2024
Arion Bank’s Pillar 3 Risk Disclosures Report describes in detail the main risk factors in the Bank’s operations and contains comprehensive information on the Bank’s risk management and capital adequacy. The report also contains information on the Bank’s governance structure with respect to risk and on the Bank’s remuneration policy. The report should be read in conjunction with the EBA’s standardized Pillar 3 disclosure templates, published simultaneously.
Pillar 3 Risk Disclosures 2024