Iceland’s major banks report profit declines for first half of the year

Iceland’s major banks, Arion Bank and Íslandsbanki, recently released their financial results for the first half of the year, showing a decrease in profits. Arion Bank reported a profit of 5.5 billion Icelandic krónur in the second quarter, down from 7.1 billion krónur last year. Similarly, Íslandsbanki generated a profit of 5.3 billion krónur for the same period, compared to 6.1 billion krónur in the previous year.

Both banks publish their annual reports in Icelandic and English but provide only English versions of their quarterly earnings. They do offer summaries of key points in Icelandic alongside the releases. The banks indicate that their need to access foreign capital markets and the presence of foreign shareholders necessitate making information available to a broader audience.

The largest single shareholder in Íslandsbanki is the Icelandic government, which owns 42.5% of the bank. Nearly 90% of its shares were held by Icelanders at the end of last year, while over 11% of Arion Bank’s shareholders are from outside Iceland.

Translating and producing financial reports in both languages involves significant effort and the risk of inconsistencies. Arion Bank noted that no stakeholders, including shareholders, analysts, or regulators, have requested Icelandic quarterly reports. Íslandsbanki emphasized that its quarterly disclosures adhere to financial institution requirements and that efficiency led to the decision to publish solely in English.

In contrast, Landsbankinn, another major Icelandic bank, releases its quarterly reports in both Icelandic and English.