Net earnings of ISK 60.2 billion (EUR 683 million)
- Shareholders' net earnings for the first nine months of ISK 60.2 billion,
increasing by 31.3% compared with the same period in 2006. Earnings decreased,
however, by 10.5% between periods taking into account the one-off after-tax
profit of ISK 21.4 billion related to Exista in the third quarter of 2006
- Shareholders' net earnings in the third quarter of ISK 14.4 billion,
increasing by 3.0% from the third quarter of 2006. Earnings decreased, however,
by 59.3% between periods taking into account the one-off after-tax profit of
ISK 21.4 billion related to Exista in the third quarter of 2006
- Return on equity for the first nine months of 27.5% on an annualised basis.
Earnings per share of ISK 82.6
- Net interest income in the third quarter up by 59.7% YoY to ISK 20.3 billion
- Net fee and commission income in the third quarter grew by 75.2% YoY to ISK
13.4 billion
- Financial loss in Treasury of ISK 6.9 billion in the third quarter, primarily
due to the decrease in the fair value of derivative contracts, bonds and
asset-backed securities
- Total assets of ISK 4,889.9 billion (EUR 55.6 billion) at the end of
September 2007, increasing by 27.7% at a fixed exchange rate from the beginning
of the year and by 20.6% in ISK
- On 15 August 2007 the Bank signed an agreement to acquire the Dutch bank NIBC
for EUR 3 billion, expected to complete by the end of the year
- The board of directors will seek approval at a shareholders' meeting to issue
new shares in the Bank and to sell them in a pre-emptive rights issue during
the fourth quarter 2007
- The board of directors plans to change the Bank's functional currency into
the euro as of January 2008, in accordance with IFRS
- The board of directors will propose at the shareholders' meeting that the
Bank's shares be redenominated in euros
Hreidar Már Sigurdsson, CEO
"Kaupthing's activities have been characterised by robust growth and we
continued to strengthen our position in the third quarter. Trends in interest
income and fee and commission income are most encouraging; interest income was
up 60%, while fee and commission income grew by 75% in the third quarter
compared with the same period last year. The international financial markets
experienced considerable unrest during the quarter, but it is good to see that
our strategy of risk diversification enabled us to achieve 19% return on equity
during the quarter. The Bank is performing well and results were particularly
strong in corporate banking and investment banking. I believe that 2007 will
prove to be another excellent year for Kaupthing Bank."
Further information
For further information on the results please contact Jónas Sigurgeirsson,
Chief Communications Officer on +354 444 6112 or Ólöf Hildur Pálsdóttir, Deputy
Head of Investor Relations, on +354 444 6569 (ir@kaupthing.com). Information on
Kaupthing Bank is also available on the Bank's website www.kaupthing.com.
