SOURCE: Landsbanki Íslands hf

November 01, 2007 03:47 ET

Landsbanki Q3 2007 Results

REYKJAVIK, ICELAND--(Marketwire - November 1, 2007) -


                Net After-tax Profit ISK 35.0 billion
                     Return on Equity (ROE) 33%
                  Deposits 76% of Customer Lending

Highlights of the Consolidated Interim Financial Statements of Landsbanki Íslands hf. 30 September 2007:

* Landsbanki Íslands hf. reported an after-tax profit for the first nine months of 2007 of ISK 35.0 billion (bn) (EUR 402m), as compared to ISK 26.2bn in the same period of 2006. The bank's pre-tax profit was ISK 39.6bn (EUR 455m).

* After-tax ROE was 33%.

* The group's 9M 2007 core income (interest margin plus fees and commissions) amounted to ISK 68.5bn (EUR 786m), increasing 31% YoY.

* Fees and commissions during the first nine months amounted to ISK 29.7bn (EUR 341m), exceeding the figure for the entire year 2006. This is an increase of 46% over the first 9M of 2006.

* Trading gains and investment income amounted to ISK 16.7bn (EUR 191m), compared to the 9M 2006 figure of ISK 12.3bn.

* The cost-income ratio for the period was 48%.

* The bank's total assets amounted to ISK 2,847bn (EUR 32.4bn) at the end of September 2007 compared with ISK 2,173bn at the beginning of the year.

* Customer deposits have increased by 104% since the beginning of this year and amounted to ISK 1,390bn (EUR 15.8bn) at the end of September 2007. They represent 76% of total loans to clients as compared to 47% at the beginning of this year.

* The bank's capital adequacy ratio (CAD rules) was 11.2% at the end of September. Tier 1 capital was 9.9%.

Highlights of Q3 2007:

* The bank's after-tax profit in Q3 was ISK 8.7bn (EUR 100m).

* After-tax ROE in Q3 was 22.4%.

* Net operating revenues in Q3 was ISK 26.6bn (EUR 305m).

* The Bank's net interest income was ISK 14.4bn (EUR 166m), as compared with ISK 13.5bn in Q2 2007

* Q3 fees and commissions amounted to ISK 10.2bn (EUR 117m), a new record for a single quarter.

CEO Sigurjón Þ. Árnason:

Both Landsbanki's performance and profitability during the first nine months of 2007 have been highly creditable. After-tax profit amounted to ISK 35 billion and return on equity was 33%. Around half of the group's revenue now originates abroad, in addition to which a major portion of its domestic activities is denominated in foreign currency. Foreign currency transactions now comprise around 2/3 of the group's total revenue. Bearing this in mind, the bank has built up a positive foreign currency balance of close to ISK 70 billion, to hedge its equity against exchange rate fluctuations. In Q3 the bank's fees and commissions continued to grow, and set a new record for a single quarter. The bank's core earnings for the first nine months of 2007 were excellent and its pre-tax ROE for core earnings was 26%. The overall outlook for Landsbanki's 2007 is positive."

CEO Halldór J. Kristjánsson:

"The success of numerous actions taken by the bank in the first half of 2006 to reduce market risk, strengthen risk management, lengthen its debt maturity profile, and especially to increase and diversify its overseas deposits has become clearer than ever in the 3rd quarter this year. Those steps taken by Landsbanki to modify its funding structure in particular have proved to major advantage in the turbulent times experienced this year on global financial markets. Customer deposits now provide around half of total Landsbanki Group funding, with the lion's share of this deposits placed with the bank by 110,000 UK retail customers using the bank's Icesave on- line savings programme. When the liquidity squeeze began on international markets in recent months, Landsbanki was therefore in a very favourable position. Both the bank's equity ratio and its liquidity are among the highest of any European bank, which means good opportunities for the bank given the current global market situation."

The interim financial statements of Landsbanki Íslands hf. as of 30 September 2007 are available on the Bank's website: www.landsbanki.com


Presentation in London 1 November

Mr Sigurjón Þ. Árnason and Mr Halldór J. Kristjánsson, joint CEOs of Landsbanki, will present Landsbanki's Q3 2007 results to analysts and investors, followed by a Q&A session. Conducted in English, the presentation will be available live on www.landsbanki.com, where relevant data and presentation material will be posted simultaneously.

Time: 4 pm UK (4 pm GMT and 5 pm CET)

Venue: Beaufort House 15 St Botolph Street, London EC3A 7QR Registration: Due to strict and time consuming security controls please ensure to complete your registration on http://www.landsbanki.is/english/registration/q32007results

Live webcast and Conference call

For those who wish to join the meeting remotely, a webcast of the presentation can be accessed on www.landsbanki.com/ir. A dial-in will also be available, and to participate please call at least 10 minutes prior to the start to +44 (0) 1452 55 00 00.

Replay and presentation material

All presentation material, plus a replay of the webcast and a podcast of the telephone conference, will subsequently be available on www.landsbanki.com/ir.

For further information contact:

Landsbanki's CEOs Sigurjón Th. Árnason, Tel. +354 410-4015 / +354 898 0177 and Halldór J. Kristjánsson, Tel. +354 410 4015 / +354 820 6399. Media Relations - Andrew Walton, Financial Dynamics, tel: +44 20 7269 7204 / mob: +44 7711 264 157.

About Landsbanki

Landsbanki is a growing European bank with total assets of ISK 2,847 billion (EUR 32.4 bn) at 30 September 2007 and a market capitalisation of ISK 477 billion (EUR 5.7 bn) at 31 October 2007. Through its extensive distribution network of 2,499 employees in 16 countries, Landsbanki is set to deliver targeted financial services based on local expertise for mid-cap corporates in Europe. Landsbanki provides retail and corporate banking, investment banking, capital markets services, asset management and wealth management for private banking clients. Landsbanki's unique product line includes access to both debt and equity markets and its research department is among the most comprehensive in Europe, including some 90 analysts covering close to 900 European stocks.

The market leader of the Icelandic financial service sector, Landsbanki's growth in recent years has been primarily organic, based upon small strategically acquired platforms in the UK, Ireland and Continental Europe. Most recently, the bank acquired the securities broker and investment bank Bridgewell in the UK.

Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the OMX Nordic Exchange Iceland under the symbol (LAIS IR). Landsbanki is rated by Moody's (Aa3 / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).

Landsbanki Consolidated Interim Financial Statements Q3 2007: http://hugin.info/136348/R/1165019/227630.pdf

Landsbanki Q3 2007 Press Release: http://hugin.info/136348/R/1165019/227631.pdf

EXCEL Landsbanki Consolidated Interim Financial Statements: http://hugin.info/136348/R/1165019/227640.xls

Landsbanki Q3 2007 Results Presentation: http://hugin.info/136348/R/1165019/227641.pdf


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