Arion Bank has reported net earnings of ISK 3.1bn ($29.2m) for Q2 compared with ISK7.1bn for the year ago quarter.

Arion, the successor bank to the failed Kaupthing, posted H1 earnings of ISK5.0bn (ISK10.5bn H12017).

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In June, Arion became the first bank to list on the main market in Iceland since the crash in 2008.

Arion was listed following an initial public offering of 28.7% of shares in the bank.

The offering was heavily oversubscribed.

Höskuldur H. Ólafsson, CEO of Arion Bank said:”The bank’s financial results for the second quarter of 2018 are in line with expectations following a somewhat challenging first three months.

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“There was strong growth in the bank’s regular activities, and loans to customers were up 5% during the first six months.  The net interest margin on interest-bearing assets increased to 2.8% in Q2 from 2.6% in Q1, and commission income grew by more than 25%.

“Income from insurance activities showed more than a fourfold increase compared with the first quarter.”

Arion Bank H1: digital highlights

Arion Bank completed four new digital projects in Q2. Digital initiatives in 2018 include motor finance, consumer lending, regular savings, capital markets and private banking customer onboarding.

Arion Bank’s mobile banking customer numbers rose by 11% in the past year and are up 44% since 2016.

Arion collected the prize for Most Disruptive Innovation of the Year at RBI’s annual awards in May.

A radical overhaul of its end-to-end mortgage process and a customer journey redesign resulted in Arion increasing its mortgage lending by 100% in 2017.

At the same time, its net promoter score rose in one year from minus 2 to plus 32.