The 35-year-old CEO, who joined Kaupthing in 1994 when it had a staff of 25 people, believes that the liberalisation and privatisation of the financial sector in Iceland in recent years has provided a major stimulus. Also, a reduction in corporate taxes from 45% to 18% at present has provided a great boost.
The key factor, however, has been the realisation, common to all three main Icelandic banks, that continued growth can only come from expansion outside Iceland. After all, Iceland has less than 300,000 people and, although Kaupthing and the other banks have established themselves recently in the lucrative mortgage market, domestic business in Iceland is limited. Having one of the highest GDPs per capita in the world ($40,250 in 2004) does not necessarily help future growth.
