ISK 25.2 billion (EUR 288 m) profit after tax
24.1% Return on equity
Financial Highlights
• Net income increased by 56% year-on-year and were higher than ever before
• Pre-tax profit in Q3 was ISK 10.4 billion, up by 0.3% from Q3 2006
• Net interest income in Q3 was ISK 9.6 billion, up by 3% from Q3 06
• Fees and commissions increased by 119% in Q3 and amounted to ISK 10.9
billion
• 46% of pre-tax profit was generated outside Iceland in the first 9 months
• Earnings per share for Q3 amounted to ISK 0.55, as compared to ISK 0.62
in Q3 06
• Total assets amounted to ISK 2,766 billion, up from ISK 2,246 at the
beginning of 2007
• Assets under management increased by 10% over the quarter to ISK 1,003
billion
• Strong capitalization with CAD ratio at 11.7%, and Tier 1 ratio at 8.5%
Operational Highlights
• Balanced and controlled loan growth of ISK 190 billion over the year
• Launch of deposits in Finland, EUR 290 million in first 30 days
• Glitnir ranked #1 in volume in equity brokerage in the Nordic region for
the first time in September
• Active quarter in terms of advisory
• Successful branding of Glitnir in Finland
• 50% of Investment Banking pre-tax profit was contributed by activities in
Glitnir' threes niches
Lárus Welding, Chief Executive Officer says: “The quarter shows
positivedevelopment for the Bank and I am very pleased that we are presenting
the highest net operating income ever for the Bank,” says Lárus Welding,
Glitnir CEO. “We are keeping our momentum in fees, despite turbulent financial
markets, with strong activities in Investment Banking and Markets, which
contributed 2.2 billion and 2 billion in pre-tax profit respectively. The loan
book grew by 145 billion in the second half of the quarter after very limited
growth in the first 8 months of the year. In turn, this should result in higher
net interest income in the coming quarters. The net interest margin is below
expectations, but we foresee the margin improving in the months to come. We
have added 600 new employees to the Group over the past 12 months, of which 300
arrived with the acquisition of FIM earlier this year. This has resulted in a
higher cost than anticipated. The cost/income ratio remains high but improved
over the quarter down 49%. On October 1st we successfully launched our retail
deposits operation in Finland and in its first month of operations we have
received over EUR 290 million in deposits, which exceeded our expectations.
Going forward, we will continue to focus on growing our net interest income and
continue the successful trends in fee generation. We have worked hard on
aligning our people and businesses, we have a clear strategy and we are well
positioned to grow still further, says Lárus Welding.
For further information please contact:
Lárus Welding
CEO
Tel: +354 440 4005
Alexander K. Guðmundsson
CFO
Tel: +354 440 4656
Bjørn Richard Johansen
MD Corporate Communication
Tel: + 47 47 800 100
brj@glitnir.no
Vala Pálsdóttir
Head of Investor Relations
Tel: +354 440 4989
vp@glitnir.is
