Annual General Meeting of Arion Bank 2010
The Annual General Meeting for the first full operating year of Arion Bank was held on Thursday 20 May at the Bank's headquarters in Borgartún, Reykjavík.
A sixth director, Colin S. Smith, was elected on to the Board of Directors. The following people now serve on the Board of Directors: Monica Caneman, Chairwoman, Gudrún Johnsen, Vice-Chairwoman, Kristján Jóhannsson, Steen Hemmingsen, Theodór S. Sigurbergsson and Colin S Smith.
Gudrún Johnsen, Vice-Chairwoman, delivered the report of the Board of Directors. She said that one of the first key tasks of the Board had been to appoint Höskuldur H. Ólafsson as the new Chief Executive Officer. Höskuldur has been the CEO of Valitor for the past four years and prior to that spent 17 years at Eimskip. He has extensive management experience from Iceland and aboard. Höskuldur will take up his appointment on 1 June.
Gudrún went on to say that the new Board and Arion Bank’s employees are faced with numerous challenges, but she said she was confident that with continued determination the staff would be able to help resolve the difficult issues facing Icelandic homes and businesses.
She expressed her gratitude for the cooperation and patience shown by the Bank's customers in these testing times and said it boded well for enduring, fruitful business relationships between the Bank and its customers.
She also mentioned that there had never been a better opportunity for people in the financial sector to learn from the lessons of the past, stressing that it was vital not to move from one extreme to another nor to disregard the knowledge and experience already in place.
The Board of Directors is striving to reinforce and develop the Bank's internal control structure and to strengthen links with the regulatory authorities. The Bank’s regulatory and procedural framework has been improved.
Arion Bank on a firm footing
Finnur Sveinbjörnsson, CEO, discussed the annual accounts for the preceding financial year. He said that the Bank had performed well in 2009 despite the challenging environment. The ongoing reconstruction of the Bank is based on a robust balance sheet, strong liquidity and solid funding.
Finnur said that there had been a strong focus on strengthening the Bank's internal controls and corporate governance. The employees have made a concerted effort to resolve a wide range of demanding and complex tasks, in what was a difficult year for the customers and staff alike.
Arion Bank reported net earnings of ISK 12.8 billion for 2009 and return on equity was 16.7%. No dividend for 2009 will be paid out.
Colin Spencer Smith - Director
Colin lives in England and during a 39 year career with Midland Bank and HSBC, following its takeover of Midland, he had extensive retail, commercial and corporate banking experience in the United Kingdom, Europe, USA and Far East with spells working in New York and Hong Kong. Following his return from the Far East in 1987, he was given responsibility for the Bank’s international lending activities and major problem loans and subsequently became Chief Lending Officer for HSBC Bank in 1997 until his retirement in 2003. As a General Manger of the bank he was also a member of the Executive Management Committee and Asset & Liability Committee besides being a director of various subsidiaries. He is an Associate of the Chartered Institute of Bankers, a Past President of the Risk Management Association in London and was Chairman of the British Bankers’ Association Wholesale Committee from 2002 to 2003. Following his retirement from HSBC he has undertaken a number of consultancy and expert witness assignments.
For further information please contact:
Berghildur Erla Bernharðsdóttir
Information Officer
CEO’S Office
berghildur.bernhardsdottir@arionbanki.is
www.arionbanki.is
Telephone: +354 444 6127
Mobile: +354 856 6127