TRANSITION TO EURO SUCCESSFUL
DELIVERING ON STRATEGY
CONTINUED INCREASE IN FEES AND COMMISSIONS
Fridrik Jóhannsson, CEO:
“We are extremely pleased to announce our first results in Euros which is a
very important milestone towards our goal of becoming an international
investment bank. The transition has been a successful one. We continue to
increase our fees and commissions and our results in the first three months are
in line with our strategy and objectives: stable income sources and further
diversification in our operations. Straumur-Burdaras currently has operations
in four countries, but we have begun to prepare for the opening of a branch in
Stockholm, Sweden. Key personnel have been recruited there and will begin to
operate in the months to come. We intend to grow this year: in the Nordic
region, in the UK, and in mainland Europe if some promising opportunities
arise.”
Results according to objectives
• After-tax profit for the first quarter 2007 totalled EUR 69.16 million, as
opposed to EUR 217.51 million during the same period last year when the Bank
sold its 21.05% share in Glitnir, then Íslandsbanki.
• Net income from operations in the first quarter amounted to EUR 92.52
million, compared with EUR 276.02 million for the same period in 2006.
• Return on equity (ROE) was 4.6% for the first three months, which corresponds
to 19.9% annualised ROE. This is in keeping with the Bank's plans.
•The cost-income ratio was 13.2% for the first three months of 2007, whereas it
was 8.0% in the first three months in 2006. The Bank will continue to invest in
further growth in core markets.
Continued increase in fees and commissions
• Net commission income amounted to EUR 30.29 million for the first three
months 2007, as against EUR 26.98 million for the same period in 2006, an
increase of 12% year-on-year.
• Net interest income in the first three months 2007 was EUR 11.16 million,
while it was EUR 5.53 million for the same period in 2006.
Strong Balance Sheet
• The Bank's total assets at EUR 5,191.56 million at the end of the first
quarter, compared with EUR 4,357.76 million at year-end 2006, have increased by
19% since the beginning of the year.
• The Bank's CAD ratio was 32,8%, with a Tier 1 capital ratio of 30,3%. In
comparison, at year-end 2006 the CAD ratio was 37.59% and the Tier 1 capital
ratio 35.20%.
• Shareholders' equity amounted to EUR 102.18 million at the end of the first
quarter, after the deduction of own shares.
Executing strategy in Balance Sheet composition
• Straumur-Burdaras' loan portfolio increased from EUR 1,352.07 million at the
beginning of 2007 to EUR 1,706.90 million at the end of the first quarter, an
increase of 26% year-on-year.
• The ratio of interest-bearing assets in the Balance Sheet has risen by four
percentage points from the year 2006: from 59% to 63%.
The interim financial statements and further information
For further information, please contact Fridrik Jóhannsson, CEO, and Jóhanna
Vigdís Gudmundsdóttir (johanna@straumur.net, mobile number: +354 8409133). The
interim financial statements for the first three months of 2007 will be
available at the Bank's offices and will be accessible, together with other
information on the Bank, on its website: www.straumur.net.
