Net earnings of ISK 70.0 billion (EUR 799 million)
• Shareholders' net earnings for 2007 of ISK 70.0 billion - (ISK 85.3 billion
in 2006)
• Shareholders' net earnings for fourth quarter of ISK 9.8 billion - (ISK 18.1
billion in same period of 2006)
• Return on equity in 2007 of 23.5%.
• Earnings per share of ISK 95.2 (ISK 127.1 in 2006). Earnings per share for
fourth quarter of ISK 13.4 (ISK 26.1 in Q4 2006)
• Net interest income in the fourth quarter up by 60.3% YoY to ISK 23.7 billion
• Net fee and commission income in the fourth quarter grew by 19.0% YoY to ISK
14.1 billion
• Financial loss in Treasury of ISK 11.6 billion in the fourth quarter,
primarily due to the decrease in the fair value of derivative contracts, bonds
and asset-backed securities
• Total assets of ISK 5,347.3 billion (EUR 58.3 billion) at year-end, increasing
by 35.8% at a fixed exchange rate during the year and by 31.9% in ISK
• Deposits as a percentage of total loans to customers increased significantly
in 2007, from 29.6% at the beginning of the year to 41.8% at the end of the
year
• In light of the instability on the financial markets, Kaupthing Bank and the
sellers of NIBC have announced their decision not to proceed with the proposed
acquisition by Kaupthing Bank of NIBC
• The Board of Directors will propose at the shareholders' meeting that a
dividend of ISK 14,810 million be paid out for 2007, corresponding to ISK 20 a
share, or 21% of net earnings.
Hreidar Már Sigurdsson, CEO
"Kaupthing enjoyed a good 2007; the year started particularly strongly but the
downturn on the international financial markets left its mark on the second
half of 2007. Return on equity was 23.5%, a most satisfactory figure. The Bank
is performing well in all its core business areas, and interest income during
the fourth quarter was the highest yet recorded.
The adverse operating environment has led to a shift in focus in operations,
and the growth of the Bank's balance sheet is set to slow down this year.
Management's prime focus is now on generating commission income and maximising
efficiency. Funding is being diversified and the Bank is now placing increasing
emphasis on deposits. A new online deposit bank was introduced during the
fourth quarter, Kaupthing Edge, which has already been launched in five
countries. In the last four months, almost 30,000 customers have placed
deposits with the Bank.
Kaupthing has reached an agreement with J.C. Flowers not to proceed with the
acquisition of Dutch bank NIBC owing to the negative situation on the financial
markets. The planned share issue will therefore no longer be taking place.
While this development is disappointing for the Bank's stakeholders, the
decision nevertheless significantly reinforces Kaupthing's liquidity position,
which is now very robust."
Further information
For further information on the results please contact Jónas Sigurgeirsson,
Chief Communications Officer on +354 444 6112 or Ólöf Hildur Pálsdóttir,
Investor Relations, on +354 444 6569 (ir@kaupthing.com). Information on
Kaupthing Bank is also available on the Bank's website www.kaupthing.com
