SPM's loss in the first six months of 2008 was ISK 4.628 million after taxes.
The Savings Bank equity was ISK 1.5 billion compared to 6,3 billion at year end
2007. SPM's CAD-ratio was -0,5%.
At the beginning of 2008 SPM's subsidiary, the Savings Bank of Siglufjörður,
merged with Skagafjörður Savings Bank which was the smallest savings bank still
operating in Iceland. Reykjavík Capital was also for the first time included in
the consolidated accounts after the approval of the FSA in Iceland of SPM's
purchase of the company.
Following are the main figures and other information regarding SPM's results in
the first six months of 2008:
SPM's Income
Loss in the first six months of the year amounted to ISK 4.628 million after
taxes.
Interest income was ISK 3.643,3 million in the period compared to ISK 1.967
million for the same period the year before.
Interest expenses were ISK 2.822 million in the period compared to ISK 1.552
million for the same period the year before.
Net interest income amounted to ISK 821 million in the first six months
compared to ISK 414 million for the same period the year before.
Operating income was ISK -2.482 million in the first six months compared to
ISK 3.606 the same period the year before.
Impairment on loans was ISK 1.936 million compared to 142 million in the same
period the year before.
SPM's operating cost was ISK 939 million in the first half of the year
compared to ISK 564 million in the same period the year before.
Operating cost as a proportion of assets was 1,76% compared to 1,3% in the
year before.
Consolidated balance sheet
SPM's total assets amounted to ISK 53.255 million on the 30th of June 2008
and were ISK 47.698 million at year end 2007.
Loans amounted to ISK 42.901 million at the end of the period compared to ISK
34.766 million at year end 2007.
Deposits were ISK 18.909 million at the end of the period compared to ISK
17.336 at year end 2007.
Equity was ISK 1.501 million at the end of the period compared to ISK 6.338
million at year end 2007.
SPM's CAD-ratio was 0,5% at the end of the period but an estimated share
capital increase and other measures will bring it to 10,7% .
Events after the 30th of June
On the 15th of August 2008 a primary capital owner's meeting approved a
proposal from the board of directors to raise the capital of the savings bank
by ISK 2.000 million and the Municipality of Borgarbyggð decided not to
exercise it's preemptive right. Kaupthing Bank hf. has subscribed to ISK 1.750
million and Straumborg hf to ISK 250 million. The increase in primary capital
is subject to approval from lenders, the Financial Supervisory Authority and
the Competition Authority. Kaupthing Bank has also pledged to find a buyer for
the Savings Bank's 8,73 share in Icebank hf. It is expected that this and other
related measures will raise the Savings Bank's CAD-ratio to 10,7% but according
to Icelandic law it may not be lower than 8%.
Following the increase in primary capital, Kaupthing Bank hf will own 70%,
Borgarbyggð will own 20% and Straumborg hf 10%. At June 2008 the Savings Bank's
primary capital was ISK 505 million, owned in full by Borgarbyggð as at the
beginning of the year.
