Íslandsbanki’s 9M 2010 results
According to the consolidated financial statements, which have been prepared on a going concern basis for the first nine months of 2010, Íslandsbanki's profit for the period was ISK 13.2bn, with income tax estimated at ISK 3.9bn. The Bank's total capital ratio of 22.6% exceeds the 16% minimum set by the Icelandic Financial Supervisory Authority (FME). Annualised return on equity for the first nine months was 17.6%.
- Profit after tax was ISK 13.2bn, estimated income tax due for the period is ISK 3.9bn.
- Net interest income was ISK 30.3bn.
- Net fee and commission income was ISK 5.2bn.
- The number of full time equivalent employees was 1,065 during the period.
- Total assets at 30 September 2010 were ISK 714.8bn.
- Loans to customers and credit institutions totalled ISK 563.7bn and total deposits amounted to ISK 459.2bn at the end of the period.
- Net interest margin on total average assets was 5.7%. The deposit/loan ratio was 81.5% at the end of the quarter.
- Total equity on 30 September 2010 amounted to ISK 105.2bn.
- Total capital ratio at the end of the period was 22.6%, with Tier 1 ratio being 18.7%
- Annualised return on equity for the first nine months was 17.6%.
Birna Einarsdóttir, CEO of Íslandsbanki:
„Íslandsbanki's results for the first nine months are in line with budget. We expect that uncertainty in the Bank's operational environment will continue. Íslandsbanki is however well equipped to withstand adversities in the market as is indicated by the Bank's total capital ratio of 22.6% which is well above the 16% required by the FME.
The restructuring of household and corporate debt has been at the forefront during 2010. Despite the uncertainty about the legality of FX linked mortgage contracts, which have been upheld in recent District Court rulings, Íslandsbanki has decided to offer customers with FX linked home mortgages to recalculate their FX denominated home mortgages on the terms laid out in a newly introduced bill proposing changes to the Law on Interest. These recalculations are already underway and are expected to be completed in the first quarter of 2011. "