Kaupthing Successor Arion Bank Reports 2012 Net of $133 MillionOmar R. Valdimarsson
The Reykjavik-based bank had a net income of 16.6 billion kronur ($133 million) last year up from 10.5 billion kronur in 2011, the company said in a statement on its website today.
Arion Banki hf was created in 2008 from the domestic operations of Kaupthing Bank hf after Kaupthing was unable to secure short-term funding and failed in October of that year. Kaupthing’s collapse left creditors struggling to recoup $31 billion in debt.
After Arion’s creation, Iceland’s government handed over an 87 percent stake in the lender to Kaupthing’s creditors as compensation for its domestic assets. Iceland’s Treasury retains a 13 percent stake.
Net interest income rose to 27.1 billion kronur from 23.4 billion kronur in 2011, and operating income was 44.8 billion kronur, up from 33.3 billion kronur a year earlier.