Íslandsbanki 15 October - 31 December 2008 results
- Profit after tax ISK 2.366 bn, estimated income tax due for the period ISK 364 million.
- Net interest income ISK 13.8 bn and net fee and commission income ISK 1.6 bn. A large portion of NII -was due to an imbalance between CPI linked assets and liabilities. Measured inflation during the period was 4.83%.
- Net operating income 37.6 bn. This was mostly due to a net foreign exchange gain following a sharp depreciation of the ISK. This gain was offset by substantial impairment for unrealisable FX gains from FX-denominated loans made to borrowers with ISK income.
- Impairment on loans and receivables ISK 47 bn, largely due to the aforementioned negative effect of ISK depreciation on the payment ability of many borrowers.
- Premium to the Depositors' and Investors' guarantee fund 605 million. Future obligations to the Fund are not recognised.
- Cost/income ratio 8%. Cost/income ratio once FX gains and irregulars are accounted for is 26%.
- Total size of balance sheet on 31 December 2008 is ISK 658 bn.
- Annualised return on equity 17.2%
- CAD ratio at year end was 10.36%
- Loans to customers total ISK 513 bn. Total deposits amount to ISK 493 bn.
- Deposit/Loan ratio 96% at year end.
- Equity as of 31 December 2008 ISK 68 bn.
- Staff numbered 1,034 at year end.
Birna Einarsdottir, CEO of Islandsbanki:
"These results highlight the imbalances that were characteristic of that time, namely record inflation levels and a greatly weakened ISK. At that time, these factors impacted on the operations of Icelandic companies. Furthermore these developments had a severe adverse effect on the payment ability of many individuals and households. On a positive note the position of many companies is not as negative as we had feared when the new bank was established.
Our balance sheet reflects something of a return to traditional banking operations in Iceland where loans are largely funded with deposits.
A milestone was reached on the bank's first anniversary on 15 October 2009 when Glitnir, on behalf of its creditors, decided to acquire a 95% share in Islandsbanki. The bank is built on solid ground and has a comfortable equity and liquidity position. The outlook holds promise despite macroeconomic conditions remaining somewhat uncertain."