SOURCE: Glitnir

April 30, 2007 06:45 ET

Glitnir Bank first quarter results for 2007

REYKJAVIK, ICELAND -- (MARKET WIRE) -- 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 billion.
  * 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 2006.
  * 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
  * 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 Ármannsson, 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."

For further information please contact:

Bjarni Ármannsson             Tómas  Kristjánsson
CEO                           CFO
Tel: +354 440 4005            Tel: +354 440 4656

Bjørn Richard Johansen        Vala Pálsdóttir
MD Corporate Communication    Head of Investor Relations
Tel: + 47 47 800 100          Tel: +354 440 4989      

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 --

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