SOURCE: Glitnir

October 30, 2007 08:45 ET

Glitnir Bank 9 Months Results for 2007

ISK 25.2 Billion (EUR 288 m) Profit After Tax; 24.1% Return on Equity

REYKJAVIK, ICELAND--(Marketwire - October 30, 2007) -


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's threes niches
    

Lárus Welding, Chief Executive Officer says: "The quarter shows positive development 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.

Glitnir Bank nine months results 2007

http://hugin.info/133924/R/1164174/227140.pdf

Glitnir Consolidated accounts Q3 2007

http://hugin.info/133924/R/1164174/227142.pdf

http://www.glitnir.com

Contact Information

  • 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