Islandsbanki hf. : 3Q2013 Interim Consolidated Financial Statements


  • Profit after tax was ISK 4.2bn in 3Q13 (3Q12: ISK 4.6bn), and ISK 15.4bn in 9M13 (9M12: ISK16.2bn).
  • Return on equity was 10.6% in the quarter (3Q12: 13.3%), and 13.4% in 9M13. (9M12: 16.3%). The YoY decrease in ROE is primarily driven by higher equity which is up 3% from Jun13 and 14% YoY. 
  • Total capital ratio remains strong at 27.2% (Jun13: 27.4%), and Core Tier 1 ratio was 23.9% (Jun13: 24%), albeit a 3.5% increase in RWA in the quarter to 663bn (Jun13: 641bn).
  • Net interest income amounted to ISK 7.4bn (3Q12: ISK 7.8bn), a YoY decrease of 5.1%. The net interest margin was 3.5% in 3Q13 (2Q13: 3.4%) and is decreasing in line with expectations as deep discount following the acquisition of Glitnir loan book is being amortized. 
  • Net valuation changes on the loan portfolio resulted in a gain of ISK 0.6bn in the quarter (3Q12: ISK 0.7n) and ISK 8.5bn in the first 9 months (9M12: ISK 2.8bn). 
  • Net fee and commission income increased to ISK 2.5bn in the quarter (3Q12: ISK 2.3bn) and to 7.6bn in the first 9 months (9M12: ISK 6.7bn). This is a YoY increase of 8% over the quarter and 13% over 9M which can mainly be attributed to Markets, Retail, Wealth and fee generating subsidiaries.
  • Cost to income ratio decreased to 48.5% (3Q12: 50.6%). 
  • Around 35 thousand individuals and 4,100 corporates have received ISK 524bn in debt forgiveness of some form since the Bank’s establishment.
  • Restructuring is on track, LPA ratio was 9.8% (Sep12: 17.4%), 90 days past due ratio is 5% (Dec12: 8%). 
  • Total assets were ISK 863bn (Jun13: ISK 823bn), with loans to customers increasing 2% to ISK 549bn (Jun13: ISK 539bn). 
Total deposits increased to ISK 526bn (Jun13: ISK 506bn), due to normal fluctuation in deposits from customers and credit institutions.

Birna Einarsdóttir, Chief Executive Officer of Íslandsbanki:

„The results for the first nine months are characterised by improved efficiency. Costs have decreased by ISK 732m representing a 7.5% reduction year-on-year when adjusted for inflation. This is the result of several cost initiatives, e.g. the Bank merged and consolidated three of its branches. As before, the Bank operates the most efficient branch network in Iceland.

Íslandsbanki´s 9m results are in line with projections and return on equity was 13.4% which is good considering the Bank’s high equity ratio of 27.2%.

In a period that is normally characterised by the summer holidays, it was nonetheless a busy quarter for the Bank. Net fee and commission income increased 13% to ISK 7.6bn in the first 9 months, compared to ISK 6.7bn for the same period last year.

The quality of the loan portfolio improved between quarters, the ratio of loans more than 90 days past due was 5%, and the Loan Portfolio Analysis ratio, an Icelandic key measure of asset quality, now down to 9.8% from 44% in 2009.”

Investor Call

Today, the Bank will host an investor call in English to present the results at 1 pm Icelandic time, including a short macro update. To register for the conference call, please e-mail:

All presentation material will subsequently be available and archived on

Further information:


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