Correction:
The item Net gain on financial assets designated at fair value is entirely the
result of an increase in the value of the Bank's shareholdings in Exista. This
item amounted to ISK 3,775 million in the first half of 2007, as compared to
ISK 1,403 million in the same period of 2006."
verður: "The item Net gain on financial assets designated at fair value is
entirely the result of an increase in the value of the Bank's shareholdings in
Exista. This item amounted to ISK 3,775 million in the first half of 2007, as
compared to ISK 1,690 million in the same period of 2006."
Profit more than doubles - return on equity 59.5%
Icebank's profit for the first half of 2007 amounted to ISK 4,198 million, of
which the profit for the second quarter was ISK 2,399 million. The half-yearly
profit rose by 138.6% from the preceding year. The year 2007 is the first year
in which the Bank publishes quarterly statements. Since the Bank only published
half-yearly statements in previous years, there will be no comparison in this
press release between the second quarter of 2007 and the second quarters of
previous years. The Bank's financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS).
Second quarter 2007
• Profit amounted to ISK 2,399 million, as compared to ISK 1,798 million in the
first quarter of 2007.
• Earnings per share declined slightly from the first quarter of 2007, from ISK
2.40 to ISK 2.10.
• Return on equity was 63.9%, as compared to 55.7% in the first quarter of
2007.
• The cost-income ratio remains virtually unchanged from the previous quarter,
at 10.0%. This ratio is below the most ambitious targets of comparable
financial undertakings.
• The interest rate margin was 2.2%, as compared to 2.1% in the first quarter
of 2007.
First half of 2007
• Profit amounted to ISK 4,198 million, as compared to ISK 1,759 million in the
same period of 2006.
• Earnings per share were ISK 4.44, as compared to ISK 2.75 for the same period
last year.
• Return on equity was 59.5%, as compared to 50.8% in the first half of 2006.
• The cost-income ratio was 10.0%, as compared to 15.8% in the same period of
2006.
• The interest rate margin increased from 1.8% in the first half of 2006 to
2.2% in the first half of 2007.
• The Bank's funding programme has been very successful, as evidenced by the
Bank's completion of a syndicated term-loan in April with a considerable
oversubscription at favourable terms.
• The number of staff has increased by 40.4% over the last twelve months, as
all departments have grown, in particular revenue-generating departments.
Finnur Sveinbjörnsson, CEO:
"It is a matter of great satisfaction to see how strong the Bank's operations
and results have been. Half-yearly profit has never been higher, and return on
equity continues to be in the 50-60% range per annum, which is an excellent
result. The Bank announced a new strategic vision last November, which entails
considerable changes. Since that time the focus has been on further improvement
of the internal functioning of the Bank as well as the establishment and
development of a new image and goals for the Bank and further increases in
business volumes. This shows up most clearly in the Bank's lending activities
and its FX and derivatives trading. Net interest income in the first half of
2007 was almost twice as high as in the same period 2006 and twice as high as
all operating expenses of the Bank. This is a clear indication of the strength
of the Bank's core business. It is important to maintain and then build on this
success, while at the same time broadening the Bank's business model, primarily
through expansion overseas. Strong profits and the Bank's strong financial
position provide a solid foundation for future growth."
For further information please contact:
Finnur Sveinbjörnsson, CEO, finnur@icebank.is, tel. +354-540 4000
Agnar Hansson, Managing Director, agnar@icebank.is, tel. +354-540 4000
Breki Karlsson, Investor relations, breki@icebank.is, tel. +354-540 4000
