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    Arion Bank named bank of the year in Iceland by The Banker magazine
    13.12.2013

    Arion Bank named bank of the year in Iceland by The Banker magazine

    Höskuldur H. Ólafsson, CEO of Arion Bank, receiving the award from representatives of The Banker. - myndHöskuldur H. Ólafsson, CEO of Arion Bank, receiving the award from representatives of The Banker.

    The Banker magazine, which is published by The Financial Times, has named Arion Bank as the bank of the year in Iceland for 2013. This is the first time since 2007 that the magazine has presented the award to an Icelandic bank and it is testament to the progress that has been made in recent years in rebuilding a new financial system in Iceland. Höskuldur H. Ólafsson, CEO of Arion Bank, received the award on behalf of the Bank.

    A key factor behind the magazine’s decision was the Bank's success in diversifying its funding. Arion Bank has raised new funding both in Iceland and internationally and by doing this has reduced the weight of deposits in the Bank's funding base. Earlier in the year Arion Bank issued bonds denominated in Norwegian kroner, thus becoming the first Icelandic bank since 2007 to issue bonds in a foreign currency. The Bank was also the first Icelandic financial institution to issue non-indexed covered bonds on the domestic market. 

    The Banker also took into account the Bank’s considerable success in reducing the number of defaulting loans its portfolio. Icelandic banks have struggled with a high default loan ratio, but in recent years they have achieved a great deal by taking extensive action to restructure the finances of businesses and households.
    Another factor behind the magazine’s decision was the Bank’s active product development, particularly the new products it has introduced on the mortgage market, such as non-indexed loans with fixed interest for five years. The Bank was also rewarded for its broad service offering and for the Arion Bank app which has proven very popular among customers.

    Höskuldur H. Ólafsson, CEO of Arion Bank:

    "It is a great pleasure to receive recognition from such a respected publication. Our objective over the last few years has been to create a good bank. This work has involved taking on difficult recovery cases from the Bank's past and also looking to the future and seeking news ways to provide our customers with first-class services and to meet their ever-changing needs. The Bank’s employees deserve to be praised for their excellent work – this is recognition for their achievements."