Islandsbanki
Following a successful 2002 and an impressive performance so far this year, Islandsbanki is the judges’ choice as the best bank in Iceland for the second year running.
Although the bank did not increase net profit as much as in 2001, the figure nonetheless rose 8.5% in 2002, while ROE stood at a decent 18.2%. The bank also began 2003 strongly, increasing assets 6% and its ROE to 23.5%.
Islandsbanki’s success has been rewarded Moody’s rating agency, which in 2002 upgraded the bank’s long-term credit rating to A1 – two notches better than its rivals. The bank’s lower funding costs, in turn, give it a significant competitive edge over those rivals.
Islandsbanki has been a leader in banking technology in Iceland for many years – and 2002 was no exception. The bank now offers tailor-made internet banking services for all its customers, including retail customers, small- and medium-size enterprises, house funds and organisations. About 70% of the bank’s retail customers are using the services.
“Islandsbanki has for years set standards for other banks in Iceland to follow, and that has not changed with increased competition, privatisation and mergers,” the bank said. In a recent poll, just under 40% of respondents considered Islandsbanki “at the forefront” of the local banking market, it said.
Bjarni Armannsson, CEO of Islandsbanki, said: “In the past 12 months, we have witnessed major changes in the banking environment in Iceland. Following privatisations and mergers, the market has become more competitive than ever. Islandsbanki has met new challenges by affirming its commitment to customer satisfaction and shareholder value, which has been the foundation for the bank’s strong and stable performance. It gives us a great pleasure that The Banker has acknowledged this by selecting Islandsbanki as the Bank of the Year in Iceland for the second consecutive year.”
