Arion Bank

Arion Banki hf.
Company typeHlutafélag
Nasdaq Iceland: ARION
ISINUS9497461015
IndustryBanking
Predecessors
FoundedJuly 1, 1930 (94 years ago) (1930-07-01) in Reykjavík, Iceland (as Búnaðarbanki Íslands)
April 2003 (as KB Banki)
October 18, 2008 (as Arion Banki)
HeadquartersReykjavík, Iceland
Number of locations
Area served
Iceland
Key people
Benedikt Gíslason
(CEO)
Brynjólfur Bjarnason
(Chairman)
ProductsConsumer banking, corporate banking, mortgage loans, private banking, private equity, wealth management, credit cards
RevenueIncrease ISK 50.764 billion (2020)[1]
Increase ISK 26.323 billion (2020)[1]
Increase ISK 12.469 billion (2020)[1]
Total assetsIncrease ISK 1.172 trillion (2020)[1]
Total equityDecrease ISK 197.845 billion (2020)[1]
Number of employees
776 (End of 2020)[1]
Subsidiaries
  • Vörður Insurance
  • Stefnir Asset Management
Websitewww.arionbanki.is

Arion Banki hf., formerly Nýja Kaupþing hf. (lit. 'New Kaupthing'), is an Icelandic bank with roots tracing back to 1930. The bank operates in the Greater Reykjavík area as well as in the largest urban areas around the country. In 2016 the bank had the third largest market share of the current accounts in Iceland (30%), behind Landsbankinn (36.1%) and Íslandsbanki (31%).[2] The Bank has 13 branches all over the country and over 100,000 customers. In recent years, the bank has faced criticism for shutting down several of its branches in smaller towns throughout Iceland.[3]

History

Nýja Kaupþing was established as a state-owned bank on the ruins of the Icelandic-based operations of the former Kaupthing Bank and placed in control of the old bank's domestic assets and liabilities. On 20 November 2009, New Kaupthing changed its name to Arion Banki.[4]

On behalf of its creditors Kaupthing, through its subsidiary Kaupskil, took ownership of Arion Bank on 8 January 2010. Kaupskil holds 87% of common equity and the Icelandic State Financial Investments (ISFI) 13%.[5] Kaupskil appoints five out of six board members of Arion Bank, the government appoints the sixth. Kaupskil has a call option to buy the government's stake at a later point.

Following a change in ownership in 2010 a new board of directors as well as a new CEO, Höskuldur H. Ólafsson, and management team were appointed.[6] A new strategic plan was also introduced.

In February 2017, the government announced its intention to sell its minority stake through an IPO.[7]

See also

References

  1. ^ a b c d e f "Annual Report 2020" (PDF). Arion Bank. 31 December 2020. Retrieved 10 January 2021.
  2. ^ Ten facts of Icelandic banks. "Tíu staðreyndir um íslensku bankana", Kjarninn, Reykjavík, 4 March 2016. Retrieved on 14 February 2018.
  3. ^ Guðlaugs Drífudóttir, Elsa María. "No bank in Blönduós when Arion closes in May (in Icelandic)". ruv.is. RÚV. Retrieved 10 September 2023.
  4. ^ "Arion banki - A new name and a new vision". News item - Arionbanki. Retrieved 2017-07-11.
  5. ^ "Financial results for the first half of 2010". News item - Arionbanki. Retrieved 2017-07-11.
  6. ^ "Höskuldur H. Ólafsson hired as Arion Bank's CEO". News item - Arionbanki. Retrieved 2017-07-11.
  7. ^ "Iceland confirms plan to sell Arion Bank stake in IPO". Reuters. 2017-02-14. Retrieved 2017-07-11.