CONSIDERABLE PLATFORM AND SERVICE GROWTH ENLARGED MARKET AREA WITH INCREASED
GEOGRAPHICAL DIVERSIFICATION FEES AND COMMISSIONS CONTINUE TO GROW
After-tax profit soars year-on-year
• After-tax profit for the second quarter of 2007 was EUR 94.19 million, as
compared with EUR 3.51 million during the same period last year. After-tax
profit for the first half of 2007 dropped by 35% to EUR 163.35 million from
its prior-year level of EUR 221.01 million. Included in the financial
statements are one month's results from Finnish bank eQ, the acquisition
which was announced at the end of May 2007.
• Net income from operations during the quarter was EUR 148.20 million, as
compared with EUR 13.72 million for the same period in 2006. For the first
six months of 2007, net income from operations decreased to EUR 240.71
million, a 20% year-on-year drop. Excluding the profit from the sale in
Islandsbanki, net income from operations increased by 15% for the first half
of 2007, compared to EUR 209,74 million in the first half of 2006.
• Annualised return on equity (ROE) was 23.80%, which is in line with the
Bank's targets.
• The cost-income ratio was 17.6% in the first half of the year, as compared
with 5.9% for the same period in 2006. The Bank will continue to invest in
further growth in core markets.
84% increase in fees and commissions
• Net commission income in the second quarter amounted to EUR 42.88 million, as
opposed to EUR 12.57 million in the same quarter last year. Net commission
income for the first half of the year, at EUR 73.16 million, was 84% higher
than the EUR 39.55 million earned during the same period in 2006.
• Net interest income in the first half of the year was EUR 19.53 million, as
compared with EUR 21.41 million for the same period in 2006.
Total assets up 57% since year-end 2006
• The Bank's total assets at the end of the second quarter amounted to EUR
6,828.66 million, where as they totalled EUR 4,357.76 million at the end of
2006. This represents an increase of 57%.
• The Bank's CAD ratio was 28,4%, with a Tier 1 capital ratio of 25.9%. 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 1,585.07 million at the end of the
second quarter, after the deduction of the Bank's own shares.
Steady increase in loan portfolio
• Straumur's loan portfolio grew from EUR 1,322.54 million at the end of 2006
to EUR 2,113.36 million at the end of the second quarter 2007, a 60%
increase.
William Fall, CEO:
“We are very pleased to confirm to our stakeholders and to the market that
Straumur has made considerable advances towards its goal of becoming the
leading Nordic investment bank. Our emphasis on the growth of the platform and
the diversification in the services we offer exemplifies Straumur's drive to
assure the stability of its income sources. The acquisitions of eQ and Wood &
Company have enabled the Bank to reach its goals much earlier than the
anticipated 2009 target: the Bank's customer base has increased threefold, it
derives 20% of its revenue from new products and services, and it has achieved
an ROE of 15% over risk-free rates. Straumur offers a complete and diversified
range of integrated investment banking services, including capital markets,
corporate finance, debt finance, and asset management services. We now operate
in eight countries and employ the equivalent of 442 full-time members of staff,
which is a fivefold increase from the same time last year.”
