Íslandsbanki’s 2009 full year results
Íslandsbanki turned a profit of ISK 23.9bn in 2009, with income tax estimated at ISK 4.7bn. The Bank's total capital ratio of 19.8% exceeds the 16% minimum set by the Icelandic Financial Supervisory Authority (FME). Return on equity is 30% but no dividend will be paid to owners. 2009 is the Bank's first full year of operations. Previous year's results only covered a two and a half month period and are therefore non-comparable. The Bank's Financial Statements were audited by the Bank's external auditors, Deloitte, who issued an unqualified opinion in their audit report.
- Profit after tax was ISK 23.9bn, estimated income tax due for the period is ISK 4.7bn and employers national insurance contribution amounted to ISK 415m.
- Net interest income was ISK 32bn, a large portion of which was due to an imbalance between CPI linked assets and liabilities. Measured inflation during the period was 8,63%.
- Net fee and commission income was ISK 7.1bn.
- Net financial income was 11.1bn, mostly due to a net foreign exchange gain following a weakening of the ISK in the first half of the year. This gain was largely offset by substantial impairments made for unrealisable FX gains from FX-denominated loans made to borrowers with ISK income.
- Net income from revaluation of loans acquired at a deep discount amounted to ISK 2bn.
- Premium to the Depositors' and Investors' guarantee fund amounted to ISK 672m. Future obligations to the Fund are not recognised. This amount is expected to double for the year 2010.
- The core cost/income ratio for 2009 was 41.3%.
- Total assets at 31 December 2009 were ISK 717bn.
- Annualised return on equity is 30%
- Total capital ratio at end of the period was 19.8% which is substantially above the 16% minimum set by the FME.
- Loans to customers totalled ISK 577bn. Total deposits amounted to ISK 479bn.
- The deposit/loan ratio was 83% at year end.
- Equity as of 31 December 2009 amounted to ISK 92bn.
- The average number of full time employees was 1,039 during period.
Birna Einarsdóttir, CEO of Íslandsbanki:
„2009 was a year characterised by great economic uncertainty which put its mark on the Bank's operations. The fundamental business is strong and turns a profit which better equips the Bank to meet the challenging market conditions that still lie ahead. The Bank contributes ISK 5.1bn to public finances in the form of taxes and national insurance contributions in 2009.
In the last year the Bank has emphasised the strengthening of its foundations which has called for an increase in the number of staff in its compliance and support units. This work will continue in 2010 with more initiatives being undertaken with regards to the Bank's internal control, rules and regulations."