31. March 2023
Successful transformation to an investment bank
The financial results of Fossar Investment Bank for the year 2022
Fossar Investment Bank‘s performance in the year 2022 was satisfactory considering the costly transformation the bank undertook during the year. The bank‘s loss during the period was 76.9 million ISK of which 35.2 million ISK was due to the expansion of Glym’s activities in the field of fund management. In addition, a significant investment was made in the bank‘s growth and costs that can be directly attributed to the company‘s transformation from a brokerage firm to an investment bank amount to 240 million ISK. Furthermore, difficult external conditions in financial markets also led to a decrease in income.
Key highlights from the financial statement:
- Fossar Investment Bank’s operating results in 2022 posted a loss of 76.9 million ISK, of which 35.2 million ISK can be attributed to Glymur hf.
- The company settled its accounts according to the international financial reporting standards (IFRS) for the first time. This led to negative effects on the operating results, mainly related to lease obligations.
- The bank’s balance sheet expanded significantly in line with new activities and total assets of the bank at end of year 2022 amounted to 7,444 million ISK, compared to 1,200 million ISK in 2021.
- Loans to customers amounted to 1,390 million ISK and increased by 1,142 million ISK during the year.
- The bank issued financial instruments for the first time during the year, with two successful commercial paper issuances at 6m REIBOR +95bps.
- Assets under management within the group amounted to 20.9 billion ISK and assets under custody amounted to 47.5 billion ISK.