Investor Relations
Medium term financial targets
Updated February 2023.
| Return on equity | >13% |
|---|---|
| Core operating income / REA | >6.7% |
| Insurance premium growth | Premium growth (net of reinsurance) to exceed the growth of the domestic market by more than 3 percentage points. |
| Cost-to-core income ratio | <48% |
| CET 1 ratio |
150-250 bps management buffer |
| Dividend payout ratio1 | 50% |
Medium term targets are reviewed annually and the underlying horizon is up to 3 years.
1 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.
Disclaimer
This notification should not be relied upon, or form the basis of any action or decision, by any person and is not an investment advice in any shape or form. Nothing in this notification is, nor shall be relied on as, a promise or representation as to the future. Some information may be based on assumptions or market conditions and may change without notice. Accordingly, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, forecasts, opinions and expectations contained in this document and no reliance should be placed on such information, forecasts, opinions and expectations. To the extent permitted by law, none of Arion Bank or any of their affiliates or advisers, any of their respective directors, officers or employees, or any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this notification or its contents.