Net loss of ISK 5 billion after taxes
Strong capital adequacy (CAD) ratio 12.1% and solid accessibility to funding
Highlights from the Second Quarter of 2008:
• Net losses after taxes of ISK 5.0 billion with all listed holdings marked to
market. Losses from holdings amounted to 4.9 billion in the second
quarter of
2008
• Net interest income was ISK 888 million, up 40% from the same period in 2007
• Net commission income was ISK 246 million, up 7% from the same period in 2007
• Net operating income was negative by ISK 3.7 billion
• Customer deposits up 4% from year-end 2007
• Customer deposits 49% of loans to customers
• Loans to customers amounted to ISK 179.8 billion
• Total assets totalled ISK 246.7 billion, up 10% from year-end 2007
• Equity was ISK 13.5 billion
• Capital adequacy (CAD) ratio was 12.1%
• Securitisation of mortgage loans of 21 billion through RMBS transaction,
78.5% of which received Aaa rating from Moody's
• Merger schedule approved by the Boards of Directors of SPRON and Kaupthing on
1 July 2008
Highlights from the first half of the year 2008:
• After-tax losses for the first six months of 2008 amounted to ISK 13.5 billion
• Net interest income for the first six months of 2008 amounted to ISK 1.7
billion and increased by 56% compared with the same period last year
• Net commission income for the first six months of 2008 amounted to ISK 581
million and increased by 7% compared with the same period last year
Gudmundur Hauksson, CEO of SPRON:
“As in the past few quarters, SPRON's performance continues to be adversely
affected by unfavourable market conditions, characterised by a substantial
decline in share prices, decreased levels of marketable securities and high
monetary policy interest rate. Our core operations remain on a solid footing,
with interest income up 56% in the first six months compared with the same
period last year. SPRON funds its loans to customers largely through deposits,
with the ratio at 49%. During the year, we have been taking measures to
streamline our operations substantially, which has begun to pay off and will
continue to become apparent in the coming quarters. We have just secured
funding through a residential mortgage backed securities transaction of ISK 21
million. The notes of which 78.5% received Aaa-rating by Moody's, are
denominated in Euros. I'm very pleased that we have obtained Moody's highest
possible rating for the notes, especially given the difficult market
conditions. This opens new doors for SPRON in terms of funding with SPRON´s
sound loan portfolio making it possible for us to continue to utilize this
source of funding. Thus, SPRON's prospects remain very satisfactory, even in
the face of challenging market conditions. ”
Further information
For further information please contact:
Gudmundur Hauksson, CEO, tel: +354 550 1213
Valgeir M. Baldursson, CFO, tel: +354 550 1774
