Brief: Íslandsbanki Agrees To Settlement Agreement, Records ISK 860 Mln Charge In Q2

Islandsbanki hf

23/06/2023 06:40

June 23 (Reuters) - Íslandsbanki  ISB.IC :
    * SAID ON THURSDAY IT ACCEPTS AN OFFER FROM THE FINANCIAL
SUPERVISORY AUTHORITY OF THE CENTRAL BANK OF ICELAND TO CONCLUDE
A CASE WITH A SETTLEMENT AGREEMENT
    * IN AGREEING TO THE SETTLEMENT AGREEMENT, THE BANK HAS
AGREED TO
PAY A FINE IN THE AMOUNT OF ISK 1,160 MILLION 
    * WILL RECORD A CHARGE OF ISK 860 MILLION IN Q2 IN
CONNECTION WITH
THIS MATTER AND HAD PREVIOUSLY MADE A PROVISION OF ISK 300
MILLION IN ITS 2022 ANNUAL ACCOUNTS
    * HAVING TAKEN INTO ACCOUNT THE CHARGE RELATING TO THE FINE,
BANK'S PROFITS FOR Q2 WILL BE IN THE RANGE OF ISK 5.8-6.5 BLN,
EQUIVALENT TO AN ANNUALISED RETURN ON EQUITY IN THE RANGE OF
10.7-12.1% FOR THE PERIOD
    * SETTLEMENT AGREEMENT PROVIDES THAT THE BANK ADMITS, THAT
IN THE
PREPARATION AND EXECUTION OF THE OFFER, IT DID NOT COMPLY WITH
THE CERTAIN APPLICABLE LEGAL REQUIREMENTS AND INTERNAL RULES OF
THE BANK ON THE PROVISION OF INVESTMENT SERVICES
    * SETTLEMENT AGREEMENT STATES THAT THE BANK'S IMPLEMENTATION
OF
GOVERNANCE AND INTERNAL CONTROLS AS WELL AS A RISK-BASED
APPROACH TO SUPERVISION OF RECORDINGS OF TELEPHONE
COMMUNICATIONS WERE INSUFFICIENT
    * SETTLEMENT AGREEMENT STATES THAT THE BANK SHOULD HAVE
CARRIED
OUT A SEPARATE RISK ASSESSMENT REGARDING ITS ROLE IN THE OFFER



        
 Source text for Eikon:  urn:newsml:reuters.com:*:nMFNbM9ZLR
 Further company coverage:  ISB.IC  

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))