Iceland’s Arion Bank pleased with first half results

Arion Bank, the state-created domestic successor to Iceland’s failed Kaupthing Bank, has reported good results for the first half of 2011.

Arion Bank’s first-half profit after tax stood at ISK 10.2 billion (EUR 63.5 million) — which is ISK 2.3 billion more than the same period last year. A statement from the bank said the profit increase is greater than expected, largely because of a re-evaluation of its corporate loan portfolio.

Arion and the bankrupt estate of Kaupthing made their final transactions in the second quarter and this is therefore the first time Arion has released half-year results which are entirely independent of Kaupthing. The bank says this simplification and extra transparency is an important step for Arion, DV reported.

At the end of the first six months of the year, Arions capital adequacy ratio stood at 21.4 percent; which is significantly above the Central Bank of Iceland minimum level of 16 percent. The same is true of the bank’s liquidity position.

A statement from Arion director Hoskuldur H. Olafsson did not say whether or not the bank’s customers can expect to benefit from its good fortunes — although he did state that the bank is helping debtors by offering a wider and more flexible range of housing loan options.