The 2012 interim financial statements of the Housing Financing Fund (HFF) have been approved by the Fund’s Board of Directors. The operating results of the period were negative to the tune of ISK 3,109 million, compared to ISK 1,561 million in profits during the same period in 2011. HFF’s equity at the end of the period was ISK 6,445 million, compared to over ISK 9,555 million at year-end 2011. The Fund’s equity ratio, calculated according to the provisions of Regulation No. 544/2004 on the Housing Financing Fund is, at present, 1.4%, while it was 2.3% at the beginning of the year. The ratio is calculated in the same manner as the equity ratio of financial undertakings. The Fund’s long-term goal is to keep the ratio above 5.0% but not below 4%. The HFF discussions with the authorities are aimed at fulfilling the provisions of the Regulation.
Operating results before impairment are, in all cases, in accordance with the year’s approved budget. Net operating income was 30% over projections and can be attributed to successful treasury management. Overall, operating income is 26% over projections. Total operating expenses are 7% under projections. However, expenses resulting from the Fund’s larger projects may be expected to materialize in the latter part of the year. A loss of 1.161 million was budgeted for the first half of 2012.
