April 30, 2007 06:57 ET

Glitnir Bank First Quarter Results for 2007

REYKJAVIK, ICELAND--(CCNMatthews - April 30, 2007) -

ISK 7.0 Billion (EUR 78 m) Profit after Tax
20.5% Return on Equity

The highlights of Glitnir Bank's financial statements for the first quarter of 2007 are as follows:

-- After-tax profit for the first quarter was ISK 7.0 billion, as
compared to ISK 9.1 billion in Q1 2006. After-tax profit was ISK 9.3
billion in Q4 2006.
-- Pre-tax profit for the first quarter was ISK 8.4 billion, as compared
to ISK 11.2 billion in Q1 06. Pre-tax profit for Q4 2006 was ISK 11.6
-- During the first three months of 2007, 42% of the Bank's pre-tax
profit was generated outside Iceland, or ISK 4.8 billion.
-- Net interest income for Q1 was ISK 7.9 billion, as compared to ISK 7.8
billion in Q1 2006. Net interest income was ISK 8.4 billion in Q4 06.
-- Fees and commissions for Q1 2007 were ISK 7.3 billion, increasing from
ISK 5.6 billion in Q1 2006. Fees and commissions was ISK 10.3 billion in Q4
-- Earnings per share for Q1 2007 amounted to ISK 0.46.
-- After-tax ROE in Q1 was 20.5%, as compared to 42% in Q1 2006. After-
tax ROE for the quarter, excluding trading gains in equities and capital
gains, was 18.5%.
-- Total assets grew by ISK 9.6 billion to ISK 2,256 billion over the
quarter. Of this figure, loans to borrowers other than credit institutions
were ISK 1,521 billion, down by ISK 85 billion, or 5.6%, including BNbank's
loans at fair value. This decrease reflects the strengthening of the ISK.
-- The refinancing need for 2007 was EUR 2.7 billion and has been
completed. Wholesale deposits in the UK which were started in October 2006
and amounted to EUR 1 billion at the end of April 2007.
-- Assets under management grew by 10% over Q1, bringing AUM to ISK 541
billion. Glitnir acquired 68.1% of FIM Group in February 2007 and FIM will
enter the Group's consolidated accounts as of 1 April 2007.
-- Book equity was ISK 153 billion at the end of March, up by 5% from the
beginning of the year. The CAD ratio was 14.2% with Tier 1 ratio at 11.6%.

Bjarni Armannsson, CEO: "The year starts well for Glitnir bank. The financial performance is solid and the bank is running at a strong pace. Our acquisition of FIM and the build up of Investment management services signifies our commitment to fee generating services and our continued commitment of building a true Nordic player in the financial markets. Increased cost in the first quarter both signifies more operations and focus on building the banks' infrastructure, but also investments into future growth. We are therefore optimistic as we go into the second quarter and see a healthy build up of our business model."

The accounts of the Bank are available on its website:

-Exchange rate as at 31.03 2007: EUR/ISK 89.3 and NOK 10.9.

Glitnir Bank Q1 2007 results --

Interim Account Glitnir Q1 2007 --

Contact Information

  • Bjarni Ármannsson
    Tel: +354 440 4005
    Tómas Kristjánsson
    Tel: +354 440 4656
    Bjørn Richard Johansen
    MD Corporate Communication
    Tel: + 47 47 800 100
    Vala Pálsdóttir
    Head of Investor Relations
    Tel: +354 440 4989