Brief: Arion Banki: Restructuring And Organizational Changes To Have Positive Impact On Co's Financial Results

Arion banki hf

26/09/2019 10:13

Sept 26 (Reuters) - Arion banki hf  ARION.IC :
    * RESTRUCTURING AND ORGANIZATIONAL CHANGES WHICH WILL HAVE
POSITIVE IMPACT ON BANK'S FINANCIAL RESULTS
    * CHANGES WILL RESULT IN A REDUCTION IN NUMBER OF EMPLOYEES
OF
12%, OR APPROXIMATELY 100 PEOPLE
    * 80% OF THESE REDUNDANCIES ARE AT BANK'S HEADQUARTERS AND
20% AT
ITS BRANCHES
    * COST OF SEVERANCE PAYMENTS WILL BE FULLY EXPENSED IN Q3
AND
AMOUNTS TO JUST UNDER ISK 900 MILLION.
    * AFTER TAX, THIS RESULTS IN A REDUCTION IN NET EARNINGS OF
ISK
650 MILLION IN Q3 2019
    * REDUCTION IN NET EARNINGS OF ISK 650 MILLION IN Q3 2019
    * ON AN ANNUAL BASIS, ALL THINGS BEING EQUAL, CHANGES ARE
EXPECTED
TO HAVE A POSITIVE IMPACT OF ISK 1.3 BILLION AFTER TAX ON BANK'S
RESULTS
    * THIS POSITIVE IMPACT WILL FIRST MATERIALIZE IN Q4 OF 2019

Source text for Eikon:  ID:nGNE8bPmZz 
Further company coverage:  ARION.IC 

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