MP Investment Bank hf. Achieved Record Results for the First 6 Months Result of
2007
The Board of Directors and the Managing Director of MP Investment Bank hf.
confirmed the Condensed Consolidated Interim Financial Statements for the
period from 1 January to 30 June 2007 with their signatures at their board
meeting on Monday the 27th of August.
Main results
• MP Investment Bank achieved record results for the first 6 months of 2007.
• Net profit for the period was ISK 1,118 million, an 94% increase from the
first six months results of 2006.
• Net interest income was ISK 159 million for the first six months of 2007
compared to a loss of ISK 269 million for the first six months of 2006.
• ROE was 41,7% on annual basis for the first six months of 2007
• Interest income grew by 126% from the first six months of 2006 and was ISK
2,191 million after the first six months of 2007.
• Operating income was ISK 1,788 million after the first six months of 2007,
69% increase from the same period last year.
• Fees and commission grew by 50% from the first six months of 2006, increased
from ISK 548 million to ISK 821 million.
• Net trading gain was ISK 808 million after the first six months of 2007,
compared to ISK 779 million after the same period last year.
• Total assets were ISK 42,435 million at the end of June 2007, compared to ISK
42,837 million at the end of last year
• The capital was ISK 5,804 million on the 30 June 2007, 18% increase from 31
December 2006.
• The share capital is ISK 1,070 million, which is the same as at the end of
2006.
• EPS for the first half of this year was 1,04 compared with 0,54 last year.
• The capital adequacy ratio (CAD) was 24,70% at the end of June 2007 compared
to 19,20% at the beginning of the year.
• Number of employees were 26 on 31 December 2006, but had increased to 41 by
30 June 2007.
MP Investment Bank achieved record results for the first six months period of
2007, where income from fees and commissions increased substantially between
the years, as well as operating income.
The consolidated interim balance sheet didn´t change much, a 0,94% decrease
from the 31 Desember 2006 to 30 June 2007. It was a result in decreased banks
own trading positions in stocks and bonds. Trading income was quite good for
the first half of the year as most of the trading profit was mainly from sold
financial assets. Larger part of the bank's income came from abroad. The
bank's activities in Central and Eastern Europe, is expected to increase
further in the future. A substantial growth at the end of last year and
beginning of this year called for some new sources of funding, resulting in the
bank's first syndicated loan with foreign banks.
Outlook
The Board of MP Investment Bank looks positive into the future prospects of the
bank, despite increased volatility in the world's financial markets. The goal
is to further increase the Bank's fee and commission income as well as the net
interest income. MP Investment Bank has increased overseas income
significantly, thanks to the opening of the Bank's Baltic Branch in Vilnius,
Lithuania, achieving direct access to all Nordic Stock Exchanges and Baltic
Stock Exchanges, as well as the opening of an Eastern European Trading Desk.
Today there are 8 employees at the MP Investment Bank's Baltic Branch in
Vilnius and 38 employees at the headquarters in Reykjavík. The Bank's
objectives for the next months are to increase income from overseas even more.
Further information:
Styrmir Þór Bragason, General Manager of MP Investment Bank, tel. +354 540 3200.
About MP Investment Bank | The Bank is a fast growing and progressive financial
company with emphasis on smaller and emerging European markets, showing
excellent results. MP Investment Bank was founded in 1999 as a securities
brokerage in 1999 and became an investment bank in 2003. The Bank provides
asset management for individuals and companies, brokerage services in domestic
and foreign markets and takes on a diversity of projects in connection with
financial services and consulting. The Bank's headquarters are in Reykjavík but
a branch is operated in Vilnius, Lithuania. For further information, please
visit www.mp.is.
