Work has been in progress in the past months to restructure SPRON's operations
in light of changed circumstances in the Icelandic economy. The aim of the
restructuring is to improve efficiency and cut operating cost in order to meet
the foreseeable decrease in the bank's income going forward. Measures to
restructure the business are necessary at this point and are implemented
independently of the merger discussions which are ongoing between SPRON,
Keflavik Savings Bank and Byr, although they will support those plans.
New organisational structure
Changes have been made to SPRON's organisational structure with the aim of
simplifying the organisation of the bank. The banks divisions will now be two,
SPRON Savings bank and Finance.
Other major changes to the bank's organisational structure include moving the
treasury department under the finance department. Following the change the
Director of Treasury, Osvaldur Knudsen will become Head of Treasury. Risk
management will also be moved under the finance department and Páll Árnason
will continue as the Head of Risk Management. Valgeir M. Baldursson is the
Director of Finance.
The service division will be closed down and it's projects partly placed under
Operations and human resources and partly under SPRON savings bank. Harpa
Gunnarsdóttir will be the Director of Operations and Human resources, Harpa was
the Director of the service division before the change. Ólafur Haraldsson will
remain the Director of SPRON savings bank.
The IT division will be closed down and it's projects placed under Operations
and Human recources in part and partly under SPRON Savings Bank. Ólafur
Haraldsson Director of SPRON savings bank was the Director of the IT division
before the change.
The Netbank's operations will remain unchanged but Geir Þórðarson Director of
Netbank has chosen to use this opportunity to resign from his position and will
be transferred to SPRON savings bank.
The operations of Frjálsi and SPRON asset management are being reviewed with
the aim of rationalising the operations further and enhancing synergies between
the subsidiaries and SPRON. Kristinn Bjarnason is the Director of Frjálsi and
Björg Kristinsdottir is the Director of SPRON asset management.
SPRON's branches in Skeifan and Borgartun merged, full time equivalent
positions decreased and salaries reduced
SPRON's branch in Skeifan will be closed as a part of the restructuring plan
and it's business operations transferred to the branch in Borgartun. SPRON's
branches will be six after the change. Full time equivalent positions will be
decreased by ten and SPRON's employees will now be 190. To contain the number
of redundancies a decrease in working hours was negotiated with some employees
and salaries and benefits reduced.
The aim is to cut operating costs by 50% in 2009 compared with 2008 and are all
cost items being reviewed. One of the items being reviewed are salaries and
related expenses and salaries which are above ISK 450.000 will be decreased by
10-30% with the decrease becoming proportionately higher as the salary is
higher.
Guðmundur Hauksson CEO:
“It is clear that with the deepening of the recession the projects of banks and
other financial institutions will change and opportunities to increase their
income base diminish substantially for the time being. The restructuring of
SPRON's operations is therefore inevitable in order to meet these changed
circumstances and are independent of the merger discussions which are ongoing
between SPRON, Keflavik Savings Bank and Byr. “
For full press release please view attachment.
For further information please contact:
Jona Ann Petursdottir, Head of Communications, tel: +354 550 1771/840 8225
