Islandsbanki hf. : 2Q2014 Condensed Consolidated Interim Financial Statements
- Profit after tax was ISK 6.4bn in 2Q14 (2Q13: ISK 6.6bn), and ISK 14.7bn in1H14 (1H13: ISK 11.2bn)
- Return on equity was 14.5% in the quarter (2Q13: 17.4%), and was 16.9% in 1H14 (1H13: 14.8%). This improvement in 1H is despite the equity base increasing 14% YoY from 156bn to 178bn.
- Total capital ratio remains strong at 29.3% (Mar14: 30.3%), and Core Tier 1 ratio was 26.1% (Mar14: 27.0%), decrease in part due to a 2% increase in RWA to ISK 674bn (1Q14: 644bn).
- Net interest income amounted to ISK 6.9bn in 2Q14 (2Q13 ISK 7.0bn), and ISK 13.6bn in 1H14 (1H13: ISK 14.5bn). The net interest margin was 3.1% in 2Q14 (2Q13: 3.4%) and now at expected long term level.
- Net fee and commission income was ISK 2.8bn in 2Q14 (2Q13: ISK 2.7bn) a 5.5% increase and 5.7bn in 1H14 (1H13: 5.1bn). This increase can mainly be attributed to Retail, Markets, Wealth and fee generating subsidiaries.
- Cost to income ratio was 56.0% (2Q13: 58.8%); decrease is attributable to lower FTE´s and continual cost management initiatives.
- Around 36 thousand individuals and 4,200 corporates have received ISK 561bn in write-offs and remissions since the Bank’s establishment.
- All large restructuring cases are now finalised, LPA ratio was 7.3% (Mar14: 7.8%) and remaining cases are small and will each only move the ratio marginally. Ratio of loans more than 90 days past due was 3.5% (Mar14: 3.8%).
- Total assets were ISK 908bn (Mar14: ISK 884bn) or 3% growth since Mar14. Loans to customers amounted to ISK 604bn (Mar14: ISK 566bn), up 7% from Mar14.
- Total deposits increased to ISK 543bn (Mar14: ISK 530bn), due to normal fluctuation in deposits from customers and credit institutions.
Please find a more detailed version of the results announcement attached below.
Birna Einarsdóttir, Chief Executive Officer of Íslandsbanki:
„The second quarter results are very satisfying with a return on equity of 14.5%. In the past two quarters we have seen increased demand for new loans, which have risen by 9% since the beginning of the year. We also note broad growth in fee and commission income across the Bank’s income divisions.
Cost initiatives continue to deliver good results with a 13.4% reduction in administrative expenses year-on-year. We continued to improve the efficiency of our branch network, replacing the Bank‘s Kringlan branch with a new self-service ATM Service Centre and merging branches in Seltjarnarnes and Central Reykjavik into a new branch in western Reykjavik scheduled for early 2015. We also note a great rise in numbers of App-users and customers have welcomed recent additions e.g. ability to pay bills, make large transfers and gain a good overview of their personal finance.
The Bank issued its first EUR denominated bond in the quarter. The EUR 100m bond was the first EUR issue for an Icelandic bank since 2008, and marks a very positive step for the Icelandic financial system. The trade followed Bank’s recently assigned S&P rating of BB+/B with stable outlook, which is one notch below the Icelandic sovereign.
Íslandsbanki’s leading market position in Iceland has been well noted abroad, most recently by Euromoney who awarded Íslandsbanki as the best bank in Iceland for the second year in a row. Íslandsbanki also won in the category for best investment bank in Iceland, but this was the first time Euromoney gives out an award in that category in Iceland. “
Investor Meeting at Kirkjusandur
Later today at 11.30 am, Birna Einarsdóttir, CEO of Íslandsbanki, and Jón Guðni Ómarsson, CFO, will present the financial results to market participants, followed by a Q&A session. The meeting is conducted in Icelandic and held at the Bank’s headquarters at Kirkjusandur.
Investor Call in English
The Bank will also host an investor call in English to present the results at 2 pm Icelandic time. The call will start with a short macro update on the Icelandic economy, followed by a review of the financial results and Q&A. Please register by replying to firstname.lastname@example.org. Dial-in details and presentation will be sent out two hours prior to the call.All presentation material will subsequently be available and archived on www.islandsbanki.is/ir.
- Condensed Consolidated Interim Financial Statements 30.06.14
- ÍSB - 2Q14 Results Announcement
- ÍSB - 2Q14 Investor Presentation