Arion Banki

S&P Global Ratings assessment on economic risk facing Iceland´s banks are receding in tandem with a stabilizing housing market and unwinding private sector leverage and therfore see´s the economic risk trend as positive.

S&P expect Iceland will continue to post solid growth following an already substantial recovery from the pandemic-induced recession, with GDP growth of 3.8% in 2023 and averaging 2.5% in 2024-2026.

S&P expects the industry risks affecting the banking sector as broadly stable, with incumbent banks remaining profitable and well-capitalized.