Arion Bank: Preliminary financial results for Q2 2020 - net earnings of ISK 4.9 billion

The preliminary financial results for Q2 2020 show net earnings of ISK 4.9 billion and calculated return on equity on an annual basis of 10.5%. The earnings are substantially above analyst consensus, which will as previously be published on the Bank's IR website.

The net earnings for the second quarter are positively impacted by the development in equity and bond markets, with net financial income amounting to ISK 2.7 billion. Net impairment during the quarter amounts to approximately ISK 1 billion, a substantial decrease from the first quarter of the year, and the operational impact of assets held for sale is insignificant.

As the interim financial accounts for Q2 2020 are still being finalized the aforementioned amounts are subject to change. The financial accounts will be published next 29 July.

It is right to iterate that there is still considerable uncertainty in the Bank's operational environment related to the development of the COVID-19 pandemic and its effect on the Icelandic economy. Mainly uncertainty in regards to the development of the Bank's assets, such as loan portfolio and securities. Arion Bank's financial position, capital ratios and liquidity reserves, is robust and the Bank therefore well positioned to tackle these unusual circumstances.

For further information contact Theodór Friðbertsson at Arion Bank's Investor Relations, ir@arionbanki.is, tel. (+354) 856 6760.

This is information that Arion Bank hf. is obliged to make public pursuant to the EU Market Abuse Regulation.

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