Glitnir Bank first quarter results for 2008

ISK 7.7 billion (EUR 76m) profit after tax
       Total recognised income in equity ISK 28.4bn (EUR 280m)
                  Strong liquidity position EUR 8.7
 
Financial Highlights

  * Profit before tax was ISK 7.7bn up 102% from Q4 07
  * Net operating income highest ever, ISK 25.6bn up 29% from Q4 07
  * Net interest income ISK 13.8bn, up 16% from Q4 07
  * Fees and commissions were strong, ISK 10.6bn a slight increase
    from Q4 07
  * Positive development in expenses, down 12% from Q4 07 to ISK
    13.8bn
  * The real growth of the loan portfolio was 4% in Q1 08
  * Liquidity position strengthened to EUR 8.7bn
  * CAD ratio strong at 11.0%, and Tier 1 ratio at 7.7%

 
Operational Highlights

  * Core earnings continue growth phase, growing 12.6% on average
    (CQGR) from Q1 07
  * Core profit before tax[1] growing 46% QoQ and 21% YoY
  * Cost income ratio down to 54% from 79% in Q4 07
  * Strong performance by Capital Markets, Corporate Banking and
    Investment Banking units in Q1 08
  * A healthy pipeline of deals in the Niches and ECM, niches with
    60% of advisory fees in Q1 08
  * Capital Markets in Iceland capitalising on the volatility from FX
    and securities
  * Glitnir the 2nd largest broker in the Nordic region, gaining
    market share to an all time high of 7.37%

 
Lárus Welding, Chief Executive Officer says: "Glitnir performed well
in the first quarter through a very challenging market conditions for
all financials. In spite of these conditions, Glitnir has
demonstrated its inherent strengths and these results confirm the
Bank's underlying resilience and flexibility.
 
Net operating income was at a record high and we experienced solid
growth in our core operations. Our focused niche strategy is
successful with 60% of our advisory fees being niche related.
Management has a clear strategic focus on the cost base and operating
costs have decreased by 12% since Q4 last year. Furthermore, we have
been able to strengthen our liquidity position and capital ratios
during a period of significant global market stress.
 
It has been necessary for all financial institutions to focus on
increasing internal efficiencies to provide consistent levels of
profitability and to increase competitiveness. The second quarter
will see a continuing focus on increasing income, preserving our
liquidity position whilst managing our cost base."

[1] Net income + Expenses + Impairments
 

For further information  please                       
contact:
Lárus      Alexander         K. Bjørn        Richard Vala Pálsdóttir
Welding    Guðmundsson          Johansen
CEO        CFO                  MD         Corporate Head of Investor
                                Communication        Relations
Tel:  +354 Tel: +354 440 4656   Tel: + 47 47 800 100 Tel:  +354   440
440 4005                                             4989
                                brj@glitnir.no