Despite modest key figures for Arctic Securities in 2022, the Arctic Group delivers satisfying financial results considering the challenges in the financial markets.
As a leading investment bank, Arctic's revenues were naturally affected by the turbulent market situation and the disappointing issue market. However, Arctic has built a broad platform and the annual revenues show good breadth in both products and sectors. The subsidiaries of the Arctic Group have delivered good results.
Financial development and results
The operating income for the Arctic Group were NOK 1325 million, against NOK 1653 million in 2021, a reduction of 20%. Profit before tax ended at NOK 186 million, against NOK 412 million in 2021. After disposition of the annual result, the Arctic Group had an equity of NOK 513 million, against NOK 458 million in 2021.
The responsible capital for the Arctic Group was NOK 489 million as of 31.12.2022. The capital adequacy was 12,1 percent, against the 8,0 percent minimum demand imposed by the authorities.
For Arctic Securities AS, the operating income ended at NOK 970 million, a reduction of 34% against NOK 1462 million in 2021. Profit before tax ended at NOK 104 million, against NOK 373 million in 2021. After disposition of the annual result, the company’s equity was NOK 712 million, against NOK 655 million in 2021.
The responsible capital for Arctic Securities AS was NOK 690 million as of 31.12.2022. The capital adequacy was 18,6 percent, against the 8,0 percent minimum demand imposed by the authorities.
A rough year for the financial markets
It was a challenging year for the global financial markets. Last year was heavily affected by Russia’s war in the Ukraine, high inflation, and significant raises of interest rates from the central banks, leading to negative returns for both stocks and bonds.
2022 was a turbulent year in the stock and capital markets, naturally affecting us at Arctic. It was no surprise that the market turmoil led to less activities within issues, reduced revenues, and a declining result for Arctic. Despite that, we have been keeping busy. Shipping and offshore had a positive 2022. We completed several M&A projects and equity and bonds issues in many sectors, says Mads Syversen, CEO of Arctic. Furthermore, Syversen points out that the annual revenues demonstrate good breadth in terms of products and sectors, and praises the role of the subsidiaries in the Arctic Group:
Our subsidiaries delivered impressive results in 2022. Their activities constitute a significant contribution the results and share of results with our employees in the Arctic Group, he says.
"Our subsidiaries delivered impressive results in 2022"- Mads Syversen
Arctic is ready for the future
Chairman of the Board, Inge H. Hansen, reflects on how Arctic has handled the challenges in the markets:
– The market turmoil has naturally affected Arctic’s activities, yet the Board is satisfied with the financial results. Arctic employees have demonstrated their skills and worked hard to create results. Arctic has a broad and well-organized product and sector platform, which is one of the group’s strengths, Hansen says.
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