Íslandsbanki’s Annual General Meeting (AGM) was held today, Thursday 19 March 2020, at 15:00 hrs., at the Bank’s headquarters in Hagasmári 3, Kópavogur. The Departing Chairman of the Board, Friðrik Sophusson, delivered the Board´s address, and the CEO, Birna Einarsdóttir, reviewed the Bank’s annual accounts and highlights of operations for 2019. Birna also reviewed the Bank’s strong position in view of the extraordinary circumstances caused by the COVID-19 pandemic and the Bank’s main responses to the situation.
Economic contraction ahead but the Bank’s position is sound
In his final address as Chairman of Íslandsbanki, Mr. Sophusson referred to the Bank´s strong position which was even more important now, when the economy has been hit hard by the COVID-19 pandemic. Fortunately, the Icelandic authorities, financial sector, and private sector are generally well prepared for such a shock. The decision to reduce the countercyclical capital buffer to zero was important for the Icelandic commercial banks in order for them to effectively react to current challenges facing companies and households. It was now time for the Government to follow through with the lowering of the bank tax. Despite Parliament´s 2019 approval for a gradual reduction of the bank tax to 0.145% over a period of several years, taxes on Icelandic banks remain about five times higher than those in neighbouring countries. The current approved reduction should nevertheless be effective immediately due to today´s pressing situation.
Mr. Sophusson presented proposals to the AGM, including a proposal that a dividend to shareholders for the 2019 financial year shall not be paid in light of uncertainties due to unprecedented circumstances in the financial markets, a proposal to approve the Bank’s compensation policy and on the election of the Board of Directors and alternates. Finally, Mr. Sophusson thanked the departing Board members for good cooperation.
Hallgrímur Snorrason, newly elected Chairman of the Board, was thankful for the election and welcomed the new members of the Board.
A personal touch in a digital world
Íslandsbanki CEO Birna Einarsdóttir also reviewed the Bank’s strong position in view of the extraordinary circumstances caused by the COVID-19 pandemic. The Bank has strong capital and liquidity ratios and is therefore well prepared to work with households and businesses to find the solutions they need.
Birna gave an overview of the Bank´s 2019 financial performance and the Bank’s vision of providing the best possible banking services in an environment where the main challenge is to maintain a personal touch in a digital world. The Bank was in contact with its customers 47 million times last year, with 99% of that contact taking place digitally. Birna also mentioned the strategy work carried out with Boston Consulting Group during the year, noting that key elements of that work are well advanced or complete. Among these projects was the implementation of a new sustainability strategy that was formulated with employee participation and is being incorporated into all aspects of the Bank’s activities.
Results of the AGM
The proposals presented to the AGM can be found on the Bank‘s website:: https://cdn.islandsbanki.is/image/upload/v1/documents/Proposals_2020_AGM.pdf
- Board report on the Bank‘s activities in 2019
Friðrik Sophusson, Chairman of the Board of Íslandsbanki, delivered the Board report on the Bank’s activities in 2019.
- Approval of the Bank’s annual accounts for 2019
Birna Einarsdóttir, Chief Executive Officer of Íslandsbanki, reviewed the Bank’s annual accounts and spoke briefly about the Bank’s strategy and key projects in the year 2020. The AGM then approved the Bank’s audited consolidated annual accounts for 2019.
- Resolution on Bank’s dividends and the disposal of profit in 2019
The AGM approved, notwithstanding the Bank’s long-term dividend payout ratio target of 40-50%, that a dividend to shareholders for the 2019 financial year shall not be paid in light of uncertainties due to unprecedented circumstances in the financial markets. The Board may convene a special shareholder meeting later in the year where a proposal regarding payment of dividends of profit for previous fiscal years could be suggested.
- Election to the Board of Directors and alternates
The following were re-elected to the Board of Directors: Anna Þórðardóttir, Árni Stefánsson, Heiðrún Jónsdóttir og Hallgrímur Snorrason, who was also elected Chairman of the Board. Flóki Halldórsson, Frosti Ólafsson and Guðrún Þorgeirsdóttir were elected as new members of the Board.
Óskar Jósefsson and Herdís Gunnarsdóttir were elected as alternates.
- Election of an audit firm
The AGM approved that Ernst & Young would remain the Bank’s external auditing firm until the next AGM.
- Decision on the remuneration of Board of Directors and alternates for the coming electoral term
The AGM approved the proposal for remuneration to Board members and alternates.
- Proposal to approve the the Bank’s compensation policy
The AGM approved the proposed Compensation Policy for the Bank.
- Other business
No other business was lawfully proposed at the meeting.
Other documents from the AGM can be found on the Banks website: https://www.islandsbanki.is/en/product/about/annual-general-meeting
The Bank’s reports for 2019 can as well be found on its website: https://www.islandsbanki.is/en/landing/about/annual-and-sustainability-report
For further information:
Head of Investor Relations – Margrét Lilja Hrafnkelsdóttir, ir@islandsbanki.is
Head of Communications - Edda Hermannsdottir, pr@islandsbanki.is
Íslandsbanki press releases
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About Íslandsbanki
A leader in financial services in Iceland, Íslandsbanki is a universal bank with total assets of ISK 1,199bn, a total capital ratio of 22.4% and a 25-40% market share across all domestic business segments at year-end 2019.
Íslandsbanki's purpose is to move Iceland forward by empowering our customers to succeed. Driven by the vision to be #1 for service, Íslandsbanki's relationship banking business model is propelled by three business divisions that manage and build relationships with the Bank's customers.
Íslandsbanki has developed a wide range of online services such as the Íslandsbanki and Kass apps, enabling customers to do their banking anywhere and anytime. At the same time, the Bank continues to operate the most efficient branch network in Iceland through its strategically located 14 branches.
Íslandsbanki has a BBB+/A-2 rating from S&P Global Ratings.
www.islandsbanki.is
Disclaimer
This press release may contain “forward-looking statements,” involving uncertainty and risks that could cause actual results to differ materially from results expressed or implied by the statements. Íslandsbanki hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. It is the investor's responsibility to not place undue reliance on these forward-looking statements which only reflect the date of this press release. Forward-looking statements should not be considered as guarantees or predictions of future events and all forward-looking statements are qualified in their entirety by this cautionary statement.
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