Investor Relations
Medium term financial targets
Arion Bank’s medium-term targets are as follows:
| Return on Equity | Exceed 10% |
|---|---|
| Revenues / REAs | Exceed 6.7% |
| Cost to Income Ratio | Reduce to 45% |
| Loan Growth | The loan book will grow in line with economic growth, with growth in mortgage lending expected to outpace corporate lending. |
| CET 1 Ratio (subject to regulatory requirements) |
Reduce to 17% |
| Dividend Policy | Pay-out ratio of approximately 50% of net earnings attributable to shareholders through either dividends or buy-back of the Bank’s shares or a combination of both. Additional distributions will be considered when Arion Bank’s capital levels are above the minimum requirements set by the regulators in addition to the Bank’s management buffer. |