Kaupthing Bank's 2006 Annual Results

Kaupthing Bank's 2006 Annual ResultsNet earnings of ISK 85.3 billion (EUR 971 million) Shareholders' net earnings of ISK 85.3 billion (EUR 971 million) in 2006, compared with ISK 49.3 billion (EUR 659 million) in 2005. Pre-tax earnings of ISK 101.1 billion (EUR 1,150 million). Shareholders' net earnings of ISK 18.1 billion (EUR 191 million) in the fourth quarter of 2006, compared with ISK 14.8 billion (EUR 156 million) for the same period in 2005. Return on equity in 2006 was 42.4%.Earnings per share of ISK 127.1 in 2006 (ISK 75.2 in 2005). Earnings per share of ISK 26.1 in fourth quarter (ISK 22.4 for the same period in 2005).Net financial income of ISK 60.2 billion (EUR 685 million) in 2006 - increasing by 61.4% from 2005.Net interest and commission income of ISK 26.7 billion (EUR 300 million) in the fourth quarter of 2006 - increasing by 69.5% compared with the same period in 2005.Operating income of ISK 40.9 billion (EUR 460 million) in the fourth quarter of 2006 - increasing by 25% compared with the same period in 2005.Total assets of ISK 4,055 billion (EUR 42.9 billion) at the end of December 2006, increasing by 37.1% at a fixed exchange rate during the year and by 59.6% in ISK.In October the Bank paid out 7.7% of the total share capital of Exista to shareholders in the form of dividends. Dividends amounted to ISK 27.5 per share.75,900,000 new shares were sold in an offering in November at a price of ISK 750 a share (SEK 75), increasing share capital by 11.4% and generating proceeds of ISK 55.6 billion.The Board of Directors will submit a proposal to the Annual General Meeting recommending that shareholders will be paid dividends amounting to ISK 10,366 million (EUR 118 million) for the operating year 2006, or ISK 14 per share, which corresponds to 12,2% of net earnings. Hreidar Már Sigurdsson, CEO "Kaupthing performed excellently during the year and 2006 was yet another record year. Most of our subsidiaries delivered record profits and it is pleasing to see the Bank's revenue base go from strength to strength. The growth of both commission and interest income is encouraging and clearly demonstrates that we are taking full advantage of the closer collaboration between different business units and locations. Looking ahead to 2007 we are confident that our growth strategy will continue to create opportunities for our clients, as serving their needs will remain our key focus." Further informationFor further information on the results please contact Hreidar Már Sigurdsson, CEO, at +354 444 6108 or Jónas Sigurgeirsson, Chief Communications Officer (ir@kaupthing.net), at +354 444 6112. Information on Kaupthing Bank is also available on the Bank's website www.kaupthing.com Kaupthing Bank offers comprehensive commercial and investment banking services to individuals, companies and institutional investors. The Bank is a leading player in all the main areas of the Icelandic financial market, and in addition to Iceland, the Bank's key markets are Denmark and the United Kingdom. The Bank focuses on the growth and development of its international activities and aims to be one of the leading investment banks in northern Europe. Kaupthing Bank operates in ten countries with its headquarters located in Reykjavík. The Bank's main subsidiaries are FIH Erhvervsbank in Denmark, Kaupthing Singer & Friedlander in the United Kingdom, Kaupthing Bank Sverige, Kaupthing Bank Luxembourg, Kaupthing Bank Oyj in Finland, Norvestia in Finland, Kaupthing Føroyar, Kaupthing New York, Kaupthing Asset Management in Switzerland, Kaupthing Norge in Norway, Arion and Kaupthing Líftryggingar hf. in Iceland. As of 31 December 2006 the number of full-time equivalent positions was 2,719 at Kaupthing Bank and its subsidiaries. Text version / Internet version / Print / Close