HIGHLIGHTS
FY 2014
* Profit after tax was ISK 22.8bn in 2014 compared to ISK 23.1bn in 2013
* Return on equity was 12.8% in 2014 compared to 14.7% in 2013. Healthy return
despite growing equity base.
* Total capital ratio remains strong at 29.6% (YE13 28.4%) and Core Tier 1
ratio was 26.5% (YE13: 25.1%)
* Net interest income amounted to ISK 27.1bn in 2014 (YE13 ISK 28.4bn), a
decrease of 4.7%. The net interest margin was 3.0% in 2014 (2013: 3.4%) and
is now at expected long term level.
* Net fee and commission income was ISK 11.5bn in 2014 (YE13: 10.4bn). This is
an YoY increase of 10% and mainly attributable to Retail and fee generating
subsidiaries.
* Cost to income ratio was 57.7% in 2014 (YE13: 58.5%). Cost to income-ratio
excludes Bank tax and one-off cost items.
* LPA ratio was 5.9% (YE13: 8%) and remaining cases are small and will each
only move the ratio marginally. Ratio of loans more than 90 days past due
was 2.5% (YE13: 4%).
* Total assets amounted to ISK 911bn (Dec13: ISK 866bn).
4Q14
* Profit after tax was ISK 4.6bn in 4Q14 (4Q13: ISK 7.7bn).
* Return on equity was 9.9% in the quarter (4Q13 19.5%).
* Net interest income amounted to ISK 6.5bn in 4Q14 (4Q13 ISK 6.5bn).
* Net fee and commission income was ISK 3.0bn in 4Q14 (4Q13: ISK 2.8bn) a 4%
increase.
Birna Einarsdóttir, Chief Executive Officer at Íslandsbanki:
"2014 was a good year for Íslandsbanki. We strengthened our core operations by
increasing efficiency and enhancing revenue growth. Efforts to streamline the
business lines have been effective with the cost from regular operations falling
by 2% year on year, which is about 4% in real terms. Amongst the measures that
have been taken are the merging of branches, the renegotiation of supplier
contracts and a reduction in the number of employees, indeed 240 fewer than
November 2011
Good progress has been made in diversifying the Bank's funding with Íslandsbanki
now the largest issuer of covered bonds in Iceland. Íslandsbanki was also the
first Icelandic bank to issue a Euro- denominated bond, and the outstanding SEK
bond was tapped.
The Bank's performance has attracted attention abroad with both Euromoney and
The Banker awarding Íslandsbanki as the best bank in Iceland. In addition, the
Bank received the highest rank of any credit institutions in the Icelandic
customer satisfaction survey. This momentum has resulted in an increased market
share for the Bank with the largest growth in lending since its establishment.
New lending amounted to ISK 165 billion, a 80% increase on the previous year.
Customer satisfaction is an essential part of a successful business, and the
Bank continues to focus on providing an excellent service."
INVESTOR MEETING AT KIRKJUSANDUR
Later today at 16 pm, Birna Einarsdóttir, CEO of Íslandsbanki, and Jón Guðni
Ómarsson, CFO, will present the financial results to market participants,
followed by a Q&A session. The meeting is conducted in Icelandic and held at the
Bank's headquarters at Kirkjusandur.
Registration to the investor meeting at Kirkjusandur.
INVESTOR CALL IN ENGLISH
The Bank will also host an investor call in English to present the results at 2
pm Icelandic time. The call will start with a short macro update on the
Icelandic economy, followed by a review of the financial results and Q&A. Please
register by replying to ir@islandsbanki.is. Dial-in details and presentation
will be sent out two hours prior to the call.
All presentation material will subsequently be available and archived on
www.islandsbanki.is/ir.
For further information:
* Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and
tel: +354 440 4752
* Media - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel:
+354 440 3678
[HUG#1896740]
