The Housing Financing Fund's audited statements for the period 01.01. 2006 to 31.12.2006 were approved and signed by its Board of Directors today on February 22, 2007. The statements were prepared in accordance with the Annual Accounts Act and the Rules on the Financial Statements of Credit Institutions. They are prepared in accordance with the same accounting principles as for the previous year.
Following are the major facts of the statements 2006 and a comparison with previous years:
Operations: 2006
ISK million 2005
ISK million 2004
ISK million 2003
ISK million
Net interest earnings 3.223 1.558 1.856 2.519
Other operating income 640 891 915 880
Other operating expenses 886 902 900 784
Provision for loan losses 498 394 755 937
Profit for the period 2.480 1.154 1.116 1.678
Balance Sheet: 31.12.2006
ISK million 31. 12. 2005
ISK million 31. 12. 2004
ISK million 31. 12. 2003
ISK million
Claims on credit institutions 99.030 94.757 47.078 8.863
Outstanding lending 406.115 376.956 431.163 445.280
Market securities 36.411 22.695 19.095 5.367
Other assets 231 180 477 322
Total assets 541.787 494.587 497.813 459.832
Borrowed funds 525.291 480.384 484.884 448.126
Other liabilities 122 309 188 81
Equity 16.374 13.894 12.741 11.625
Total liabilities and equity 541.787 494.587 497.813 459.832
Cash flows: 2006
ISK million 2005
ISK million 2004
ISK million 2003
ISK million
Net cash provided by operating activities 4.016 2.255 2.007 2.120
Net cash used in investing activities -14.596 8.471 -14.308 -45.045
Net cash provided by financing activities 9.969 -24.137 18.499 45.479
Decrease in cash and cash equivalents -611 -13.411 6.198 2.554
Cash and cash equivalents at the beginning of the period 1.435 14.845 8.648 6.093
Cash and cash equivalents at the end of the period 824 1.435 14.845 8.647
According to the Profit and Loss Account, the Fund's net profit for the period amounted to ISK 2,480 million compared to ISK 1.154 million for the previous year. The Fund's equity amounted to ISK 16,375 million at the end of the period, or 3.00% of the Fund's total assets. The capital ratio of the Fund, calculated according to stipulations in the Rules on The Housing Financing Fund no. 544/2004, was 6.3%. The calculation of the ratio is equivalent to the calculation of the capital ratio of financial institutions. The long-term goal of the Fund is to keep the ratio above 5.0%. The net interest earnings was ISK 3.223 million compared with 1.558 million for the previous year.
The outstanding lending amounted to ISK 406.115 million in the end of the year and increased by ISK 29.159 million from the previous year. The total borrowning amounted to ISK 525.291 million and increased by ISK 44.907 million during the year.
For further information please phone Guðmundur Bjarnason, Jóhann G. Jóhannsson or Ásta H. Bragadóttir and the number is +354 569 6900.
