Arctic Securities AS (Arctic) experienced further growth in revenues and profits in 2021, despite a significant write-down. Hence, last year was a new record year for Arctic. The company's capital adequacy remains strong.
Operating revenues in Arctic were NOK 1,462 million in 2021, up from 1,315 million in 2020. Profit before tax increased to NOK 373 million, while NOK 316 million in 2020. After allocation of the annual result, the company's equity was NOK 665 million, up from NOK 530 million the year before.
The Arctic Group's operating revenues in 2021 were NOK 1,653 million, compared with NOK 1,429 million in 2020. Profit before tax ended at NOK 412 million, while NOK 333 million in 2020. After allocation of the annual result, the group's equity was NOK 458 million, up from NOK 326 million the year before.
As of 31.12.2021, Arctic had a core capital of NOK 644 million and a capital adequacy ratio of 15.82 per cent against a government-imposed minimum requirement of 8.0 per cent. The group's core capital as of 31.12.2021 was NOK 431 million. The capital adequacy ratio was 9.90 per cent against the minimum requirement of 8.0 per cent.
Arctic's revenues and profits related to the company's proprietary trading were negatively affected in 2021 by a write-down of NOK 107 million related to financial exposure to securities issued by ERH AS (formerly Emergy AS). Arctic has had a long-standing client relationship with ERH AS and has assisted the company, and its subsidiaries, in raising capital on several occasions. In this case, Arctic has also become owner of financial instruments issued by the company.
- 2021 was a positive year in the stock and capital markets, with good access to risk capital. The activity level has been high, and Arctic has continued increasing the number of assignments and transactions, says CEO Mads H. Syversen. According to him, Arctic's revenues showed a wide range in terms of products and sectors. Arctic experienced growth in M&A assignments and debt financing, the real estate market has remained strong, and Arctic has upheld its solid position. Furthermore, Arctic has assisted significant projects in the financial sector, and activities within shipping increased.
- Today's market picture is strongly influenced by the Russian invasion of Ukraine, with human suffering and considerable concern for the way forward. The Arctic Group has significant experience and expertise in a broad range of sectors, a solid product platform and an international network. Furthermore, we have positioned ourselves with solid knowledge in renewables as well as traditional energy. We believe that the group is well positioned, also considering the extraordinary circumstances, Syversen emphasizes.
- The board is pleased that Arctic's progress continued in 2021 - with further growth in both the top and bottom lines despite significant write-downs. The board is particularly content with the company's strong capital adequacy ratio of almost 16 per cent and the group’s capital ratio of close to 10 per cent, says chairman of the board Inge H. Hansen. He emphasizes that Arctic's solid market position, expertise and financial foundation mean that the company is well equipped to handle the challenges that may arise due to the tragic war in Ukraine.