Net After-tax Profit ISK 26.3 billion
Return on Equity (ROE) 39%
Deposits 76% of loans to customer
Highlights of the Consolidated Interim Financial Statements of Landsbanki
Íslands hf. 30 June 2007:
• Landsbanki Íslands hf. reported an after-tax profit for the 1st half of 2007
of ISK 26.3 billion (€300bn), as compared to ISK 20.4bn in H1 of 2006. The
bank's pre-tax profit was ISK 29.5bn (€337m).
• After-tax ROE was 39%.
• The group's core income (interest margin plus fees and commissions) amounted
to ISK 43.9bn (€502m) in H1 2007, increasing 21% YoY.
• Net fee and commission income was ISK 19.5bn, (€223m) of which ISK 12.8bn
(€146m), or 65%, is derived from activities abroad compared to ISK 7.6bn, or
55% for H1 2006.
• Trading gains and investment income amounted to ISK 14.8bn (€169m), compared
to ISK 9.7bn in H1 2006.
• The cost-income ratio for the period was 44%.
• The bank's total assets amounted to ISK 2,597bn (€30.8bn) at the end of June
2007 compared to ISK 2,173bn at the beginning of 2007.
• Customer deposits grew by 74% in H1 2007, to total ISK 1,187bn (€14.1bn) at
the end of June. They represent 76% of total loans to customers as compared
to 47% at the beginning of this year.
• The bank's equity ratio was 12.5% at the end of June. Tier 1 ratio was 11.1%.
Highlights of Q2 2007:
• The bank's after-tax profit amounted to ISK 12.5bn (€146m) in Q2 of this
year, as compared to ISK 13.8bn in Q1 2007.
• Net operating revenues in Q2 were ISK 29.1bn (€340m).
• Net interest revenues in Q2 were ISK 13.5bn (€158m) compared to ISK 10.9bn in
Q1.
• Net fees and commission income was ISK 9.7.1bn (€113m) in Q2.
• Customer deposits grew by ISK 274bn (€3.3bn) while customer lending increased
by ISK 84bn (€997m) in Q2.
CEO Sigurjón Þ. Árnason:
“Landsbanki reports a very good performance in Q2 2007. Its after-tax profit
was ISK 12.5bn (€146m), and total H1 profit is ISK 26.3bn (€300bn) and ROE 39%.
Fees and commissions for the first six months of this year totalled ISK 19.5bn
(€223m), making the two first quarters of this year the best ever in the bank's
history. Landsbanki's overseas operations now account for 65% of the bank's
total fee and commission income, compared with 55% during the first six months
of last year. During the year to date, we have made considerable investment in
further developing the group's international operations, for instance in
Norway, Finland and the US. We have also expanded the activities of
Landsbanki's London Branch and the acquisition of Bridgewell Securities will
strengthen the bank's position in the UK market. All operating divisions are
performing well and returning a good profit, reflecting Landsbanki's stability
and diversified operations.”
CEO Halldór J. Kristjánsson:
“It is gratifying to see Landsbanki's strength reflected in its results for the
first six months of this year. The bank's funding pillars have been steadily
reinforced by the rapid increase in its deposits, which have grown by 74% or
over ISK 500bn (€5.9bn) year to date. The deciding factor here has been the
highly successful Icesave on-line savings programme in the UK, which currently
has around 100,000 customers and GBP 4bn in deposits. Deposits currently
represent 76% of customer lending, compared to 47% at the beginning of this
year and 34% at the beginning of the previous year. For Landsbanki, the change
is highly significant, in particular in view of potential volatility on
international financial markets. Building on the success of the first half of
2007, and the underlying solid core performance, the outlook for 2007 as a
whole is bright.”
The interim financial statements of Landsbanki Íslands hf. as of 30 June 2007
are available on the Bank's website: www.landsbanki.com.
For further information contact Landsbanki's CEOs:
Sigurjón Th. Árnason, Tel. +354 410-4009 / +354 898 0177 and Halldór J.
Kristjánsson, Tel. +354 410 4015 / +354 820 6399.
