The 6M results of the Housing Financing Fund (HFF) in 2011 were endorsed by the Fund's Board of Directors today. HFF's operations were in surplus by ISK 1.5 billion (bn) during this period, as compared with a deficit on operations of ISK 1.6 bn during this same period last year. The change can be attributed, firstly, to a reverse entry of provisions for loan write-offs, as around 5,000 applications were received for the government's 110% solution whereas some 9,400 applications had been expected. Secondly, operating expenses have increased YoY due to an increase in the number of employees processing applications, managing real estate and working on the financial restructuring of rental companies. In addition, appropriation of real estate has resulted in high one-off costs.
As of 30 June 2011, HFF's equity was just over ISK 10 bn, compared with ISK 8.6 bn at year-end 2010. The Fund's capital ratio, calculated as provided for in Regulation No. 544/2004, on the Housing Financing Fund, is currently 2.4%, up from 2.2% at the beginning of this year. The percentage is calculated in the same manner as the capital adequacy ratio of financial undertakings.
