...May 10, 2023 FRANKFURT (S&P Global Ratings) May 10, 2023--S&P Global Ratings today said that Islandsbanki's sound earnings in the first quarter of 2023 and its reduced capital distribution plan will support its robust capital position and provide financial flexibility as the merger talks with Kvika banki hf. (unrated) continue. We project the bank's risk-adjusted capital ratio will exceed 15% in the next 12-24 months, compared with 14.5% as of year-end 2022 (15.3% adjusted for reduced share buyback plans). Islandsbanki hf (###/Stable/A-2) reported a net income of Icelandic krona (ISK) 6.211 billion (about 41 million) and return on equity of 11.4% in the first quarter of 2023, with sound contribution from all four business lines. Despite the weight of wage increases, strategic projects, and the inflationary environment on the bank's cost base, Islandsbanki maintained strong operating efficiency with a cost-to-income ratio of 42.1%. In February 2023, Islandsbanki announced that, due to the...
