Principal Results
• Fee and commission income was ISK 679 million, which represents an increase
of 8% from the preceding year
• Net operating income was ISK 1,109 million, which represents an increase of
30% from the preceding year
• A precautionary write-down of loans amounted to ISK 748 million.
• The loss in the first half of the year was ISK 961 million, as compared to a
profit of ISK 207 million in the first half of 2007
• Total assets at 30 June amounted to ISK 53.7 billion, while assets at the
turn of the year amounted to ISK 34.3 billion
• Assets under management amounted to ISK 40 billion and debt under management
amounted to ISK 270 billion
• Tier 1 capital ratio was 17.2%
BENEDIKT ÁRNASON, CEO OF ASKAR CAPITAL: “In the first half of the year work was
continued on developing infrastructure and business relationships, since the
Bank is only 18 months old and has held an operating licence for only one year.
As a result of the difficulties in the international financial markets, growth
in real estate and venture capital projects has been much slower than
anticipated. However, the current market conditions have led to opportunities
in other areas of specialised financial advisory services, including currency
products, debt management and funding advisory. Although the operating loss in
the first half of the year is disappointing, it is primarily a result of a
precautionary write-down of loans, particularly on account of the Bank's
subsidiary, Avant. We have responded to the changed environment, and our budget
for the second half of the year projects fee and commission income in excess of
operating expenses.”
