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Arion Bank hf

LSE:0YTA
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0YTA
LSE
ISK137B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Arion Bank hf. provides various financial services to companies, institutional investors, and individuals in Iceland. The last earnings update was 69 days ago. More info.


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0YTA Share Price and Events
7 Day Returns
0%
LSE:0YTA
0.9%
GB Banks
0.5%
GB Market
1 Year Returns
-
LSE:0YTA
-9.3%
GB Banks
0.8%
GB Market
0YTA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arion Bank hf (0YTA) 0% -7.7% - - - -
GB Banks 0.9% 7.9% 5.9% -9.3% 18.7% -10.6%
GB Market 0.5% 3.6% 7.6% 0.8% 15.9% 6.2%
1 Year Return vs Industry and Market
  • No trading data on 0YTA.
  • No trading data on 0YTA.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Arion Bank hf's competitors could be found in our database.

0YTA Value

 Is Arion Bank hf undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arion Bank hf to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arion Bank hf.

LSE:0YTA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ISK109.88 * 10.5%
ISK11.50
Book Value of Equity per Share Median Book Value from the past 5 years. ISK109.88
Discount Rate (Cost of Equity) See below 11.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0YTA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.592 (1 + (1- 20%) (317.01%))
1.733
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.73
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.733 * 5.96%)
11.56%

Discounted Cash Flow Calculation for LSE:0YTA using Excess Returns Model Model

The calculations below outline how an intrinsic value for Arion Bank hf is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0YTA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.5% – 11.56%) * ISK109.88)
ISK-1.19
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ISK-1.19 / (11.56% - 1.23%)
ISK-11.54
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ISK109.88 + ISK-11.54
ISK98.33
LSE:0YTA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0YTA represents 0.07607x of ICSE:ARION
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.07607x
Value per Share
(Listing Adjusted, SEK)
= Value per Share (ISK) x Listing Adjustment Factor
= ISK 98.33 x 0.07607
SEK7.48
Value per share (SEK) From above. SEK7.48
Current discount Discount to share price of SEK5.76
= -1 x (SEK5.76 - SEK7.48) / SEK7.48
23%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arion Bank hf is available for.
Intrinsic value
23%
Share price is SEK5.76 vs Future cash flow value of SEK7.48
Current Discount Checks
For Arion Bank hf to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arion Bank hf's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Arion Bank hf's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arion Bank hf's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arion Bank hf's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0YTA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in ISK ISK4.49
ICSE:ARION Share Price ** ICSE (2019-04-16) in ISK ISK75.7
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arion Bank hf.

LSE:0YTA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ICSE:ARION Share Price ÷ EPS (both in ISK)

= 75.7 ÷ 4.49

16.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arion Bank hf is overvalued based on earnings compared to the GB Banks industry average.
  • Arion Bank hf is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Arion Bank hf's expected growth come at a high price?
Raw Data
LSE:0YTA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
15.5%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:0YTA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.84x ÷ 15.5%

1.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arion Bank hf is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Arion Bank hf's assets?
Raw Data
LSE:0YTA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in ISK ISK110.66
ICSE:ARION Share Price * ICSE (2019-04-16) in ISK ISK75.7
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:0YTA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ICSE:ARION Share Price ÷ Book Value per Share (both in ISK)

= 75.7 ÷ 110.66

0.68x

* Primary Listing of Arion Bank hf.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arion Bank hf is good value based on assets compared to the GB Banks industry average.
X
Value checks
We assess Arion Bank hf's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Arion Bank hf has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

0YTA Future Performance

 How is Arion Bank hf expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arion Bank hf expected to grow at an attractive rate?
  • Arion Bank hf's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Arion Bank hf's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Arion Bank hf's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0YTA Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0YTA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 15.5%
LSE:0YTA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 8.6%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0YTA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in ISK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0YTA Future Estimates Data
Date (Data in ISK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 55,584 13,490 2
2020-12-31 52,818 12,644 3
2019-12-31 50,936 11,673 3
LSE:0YTA Past Financials Data
Date (Data in ISK Millions) Revenue Cash Flow Net Income *
2018-12-31 42,175 -21,709 8,275
2018-09-30 52,647 -36,304 9,692
2018-06-30 50,659 -49,457 8,428
2018-03-31 50,996 -22,426 13,085
2017-12-31 46,142 12,010 15,125
2017-09-30 51,877 49,906 15,291
2017-06-30 61,182 77,692 22,712
2017-03-31 63,554 22,203 22,195
2016-12-31 61,501 27,062 21,147
2016-09-30 79,405 16,000 32,695
2016-06-30 75,201 15,773 31,443
2016-03-31 70,570 -13,747 29,187

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arion Bank hf's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
  • Arion Bank hf's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0YTA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Arion Bank hf Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0YTA Future Estimates Data
Date (Data in ISK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 6.70 6.70 6.70 1.00
2019-12-31 6.36 6.36 6.36 1.00
LSE:0YTA Past Financials Data
Date (Data in ISK Millions) EPS *
2018-12-31 4.49
2018-09-30 5.13
2018-06-30 4.36
2018-03-31 6.60
2017-12-31 7.56
2017-09-30 7.65
2017-06-30 11.36
2017-03-31 11.10
2016-12-31 10.57
2016-09-30 16.35
2016-06-30 15.72
2016-03-31 14.61

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arion Bank hf is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Arion Bank hf's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arion Bank hf has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

0YTA Past Performance

  How has Arion Bank hf performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arion Bank hf's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arion Bank hf's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Arion Bank hf's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Arion Bank hf's 1-year earnings growth is negative, it can't be compared to the GB Banks industry average.
Earnings and Revenue History
Arion Bank hf's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arion Bank hf Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0YTA Past Revenue, Cash Flow and Net Income Data
Date (Data in ISK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 42,175.00 8,275.00 14,278.00
2018-09-30 52,647.00 9,692.00 18,380.00
2018-06-30 50,659.00 8,428.00 18,053.00
2018-03-31 50,996.00 13,085.00 17,603.00
2017-12-31 46,142.00 15,125.00 13,602.00
2017-09-30 51,877.00 15,291.00 17,031.00
2017-06-30 61,182.00 22,712.00 17,016.00
2017-03-31 63,554.00 22,195.00 16,773.00
2016-12-31 61,501.00 21,147.00 16,659.00
2016-09-30 79,405.00 32,695.00 16,824.00
2016-06-30 75,201.00 31,443.00 16,151.00
2016-03-31 70,570.00 29,187.00 15,508.00
2015-12-31 82,688.00 41,608.00 14,892.00
2015-09-30 64,602.00 30,975.00 14,273.00
2015-06-30 63,884.00 29,958.00 13,982.00
2015-03-31 67,668.00 33,641.00 14,021.00
2014-12-31 55,063.00 21,632.00 13,979.00
2014-09-30 52,490.00 18,164.00 14,124.00
2014-06-30 49,544.00 17,156.00 14,022.00
2014-03-31 45,468.00 13,560.00 13,665.00
2013-12-31 43,288.00 12,620.00 13,537.00
2013-09-30 40,868.00 12,270.00 6,316.00
2013-06-30 39,523.00 11,544.00 8,359.00
2013-03-31 41,170.00 13,207.00 10,414.00
2012-12-31 43,228.00 15,015.00 12,459.00
2012-09-30 12,146.00 6,846.00 21,326.00
2012-06-30 12,527.00 6,981.00 21,085.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arion Bank hf has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arion Bank hf used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Arion Bank hf improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Arion Bank hf's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arion Bank hf has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

0YTA Health

 How is Arion Bank hf's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Arion Bank hf's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arion Bank hf Company Filings, last reported 3 months ago.

LSE:0YTA Past Debt and Equity Data
Date (Data in ISK Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 200,859.00 435,313.00 116,830.00
2018-09-30 200,056.00 443,332.00 158,281.00
2018-06-30 207,631.00 420,475.00 172,883.00
2018-03-31 204,245.00 410,988.00 153,966.00
2017-12-31 225,734.00 394,435.00 189,522.00
2017-09-30 221,709.00 409,646.00 194,190.00
2017-06-30 221,767.00 390,998.00 211,607.00
2017-03-31 214,780.00 367,603.00 223,449.00
2016-12-31 211,384.00 349,305.00 129,092.00
2016-09-30 207,006.00 338,389.00 129,632.00
2016-06-30 208,844.00 349,698.00 141,542.00
2016-03-31 204,661.00 335,691.00 137,743.00
2015-12-31 201,894.00 280,803.00 112,401.00
2015-09-30 174,795.00 272,072.00 134,083.00
2015-06-30 168,445.00 268,153.00 95,585.00
2015-03-31 177,115.00 293,596.00 165,770.00
2014-12-31 162,212.00 256,000.00 92,741.00
2014-09-30 159,765.00 244,888.00 95,015.00
2014-06-30 154,543.00 260,830.00 94,193.00
2014-03-31 147,813.00 260,983.00 70,965.00
2013-12-31 144,947.00 265,247.00 100,753.00
2013-09-30 140,887.00 268,396.00 90,263.00
2013-06-30 136,788.00 262,185.00 98,727.00
2013-03-31 132,286.00 258,250.00 71,948.00
2012-12-31 130,878.00 263,270.00 105,961.00
2012-09-30 128,432.00 241,476.00 83,484.00
2012-06-30 125,143.00 246,396.00 77,999.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Arion Bank hf has an acceptable proportion of non-loan assets held.
  • Arion Bank hf's liabilities are made up of primarily higher risk sources of funding.
  • Arion Bank hf has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).
  • Arion Bank hf's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Arion Bank hf has a low allowance for bad loans.
  • Arion Bank hf has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Arion Bank hf's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arion Bank hf has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

0YTA Dividends

 What is Arion Bank hf's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.61%
Current annual income from Arion Bank hf dividends. Estimated to be 15.23% next year.
If you bought SEK2,000 of Arion Bank hf shares you are expected to receive SEK132 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Arion Bank hf's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Arion Bank hf's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0YTA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0YTA Future Dividends Estimate Data
Date (Data in ISK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 12.07 2.00
2020-12-31 11.51 2.00
2019-12-31 11.01 2.00
LSE:0YTA Past Annualized Dividends Data
Date (Data in ISK) Dividend per share (annual) Avg. Yield (%)
2019-03-06 5.000 6.665

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Arion Bank hf has stable dividend payments.
  • Arion Bank hf only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Arion Bank hf's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.6x coverage).
X
Income/ dividend checks
We assess Arion Bank hf's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arion Bank hf afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arion Bank hf has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

0YTA Management

 What is the CEO of Arion Bank hf's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Höskuldur Ólafsson
COMPENSATION ISK74,700,000
AGE 59
TENURE AS CEO 8.8 years
CEO Bio

Mr. Höskuldur H. Ólafsson has been the Chief Executive Officer of Arion Bank hf. since June 2010. Mr. Ólafsson served as the Chief Executive Officer at VALITOR HF (also known as VISA Iceland) since 2006. Prior to that, he worked at the Icelandic transportation company Eimskip Transport for almost 20 years and held a range of management positions, including that of Deputy Chief Executive Officer. He has also served on the boards of directors of numerous companies and organizations in Iceland and abroad. Mr. Ólafsson graduated with a cand. oecon. degree in business administration from the University of Iceland.

CEO Compensation
  • Höskuldur's compensation has been consistent with company performance over the past year.
  • Höskuldur's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Arion Bank hf management team in years:

8.2
Average Tenure
48
Average Age
  • The average tenure for the Arion Bank hf management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Höskuldur Ólafsson

TITLE
Chief Executive Officer
COMPENSATION
ISK75M
AGE
59
TENURE
8.8 yrs

Stefán Pétursson

TITLE
Chief Financial Officer
COMPENSATION
ISK50M
AGE
55
TENURE
8.7 yrs

Lýdur Thorgeirsson

TITLE
Managing Director of Investment Banking
COMPENSATION
ISK37M
AGE
42
TENURE
1.5 yrs

Ida Benediktsdóttir

TITLE
Managing Director of Retail Banking
COMPENSATION
ISK41M
AGE
42

Rúnar Jónsson

TITLE
Managing Director of Corporate Banking
COMPENSATION
ISK7M
TENURE
0.5 yrs

Sture Stölen

TITLE
Head of Investor Relations

Jónína Lárusdóttir

TITLE
Managing Director of Legal Division
AGE
48
TENURE
8.4 yrs

Hákon Pétursson

TITLE
Compliance Officer
AGE
37
TENURE
8 yrs

Haraldur Eidsson

TITLE
Head of Corporate Communications & Financial Institutions
TENURE
6.6 yrs

Gísli Óttarsson

TITLE
Chief Risk Officer
AGE
55
TENURE
10 yrs
Board of Directors Tenure

Average tenure and age of the Arion Bank hf board of directors in years:

0.1
Average Tenure
47
Average Age
  • The average tenure for the Arion Bank hf board of directors is less than 3 years, this suggests a new board.
Board of Directors

Brynjólfur Bjarnason

TITLE
Chairman of the Board
COMPENSATION
ISK13M
AGE
72
TENURE
0.1 yrs

Herdís Fjeldsted

TITLE
Vice-Chairman the Board
COMPENSATION
ISK8M
AGE
47
TENURE
0.1 yrs

Steinunn Thórdardóttir

TITLE
Director
COMPENSATION
ISK9M
AGE
46
TENURE
1.4 yrs

Benedikt Gíslason

TITLE
Director
COMPENSATION
ISK3M
AGE
44
TENURE
0.6 yrs

Liv Fiksdahl

TITLE
Director
AGE
53
TENURE
0.1 yrs

Renier Lemmens

TITLE
Director
AGE
53
TENURE
0.1 yrs

Ólafur Svansson

TITLE
Alternate Director
AGE
46

Sigurbjörg Jónsdóttir

TITLE
Alternate Director
AGE
48

Thórarinn Thorgeirsson

TITLE
Alternate Director

Ríkharðsson Þröstur

TITLE
Alternate Director
AGE
40
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
X
Management checks
We assess Arion Bank hf's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arion Bank hf has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

0YTA News

Simply Wall St News

0YTA Company Info

Description

Arion Bank hf. provides various financial services to companies, institutional investors, and individuals in Iceland. The company operates through Asset Management, Corporate Banking, Investment Banking, Retail Banking, Treasury, and Other Divisions and Subsidiaries segments. It offers deposits, and savings and currency accounts; student support and surety loans; currency, credit, and debit cards; and mortgages, vehicle financing products, corporate finance, and loan guarantees. The company also provides asset management products, securities, funds, and capital research services; buys, sells, and manages securities; corporate credit and factoring services; and pension savings products. In addition, it offers custody and settlement, income collection, corporate actions, proxy voting, tax reclaims, and clearing, as well as value added electronic corporate solutions. Further, the company provides bonds; life insurance, real estate, and payment solutions; and private and online banking services. It operates through a network of 24 branches in Iceland. The company was formerly known as New Kaupthing Bank hf. and changed its name to Arion Bank hf. in November 2009. The company was founded in 2008 and is based in Reykjavík, Iceland. Arion Bank hf. is a subsidiary of Kaupskil ehf.

Details
Name: Arion Bank hf.
0YTA
Exchange: LSE
Founded: 2008
ISK10,647,116,985
1,814,000,000
Website: http://www.arionbanki.is
Address: Arion Bank hf.
Borgartúni 19,
Reykjavík,
105,
Iceland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ICSE ARION Ordinary Shares OMX Nordic Exchange Iceland IS ISK 15. Jun 2018
DB A2JNAX SDR EACH REP 1 ISK1 Deutsche Boerse AG DE EUR 15. Jun 2018
LSE 0YTA SDR EACH REP 1 ISK1 London Stock Exchange GB SEK 15. Jun 2018
OM ARION SDB SDR EACH REP 1 ISK1 OMX Nordic Exchange Stockholm SE SEK 15. Jun 2018
Number of employees
Current staff
Staff numbers
904
Arion Bank hf employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 22:38
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/16
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.