Íslandsbanki issues new local government sector report


Icelandic municipalities’ revenues increased by 8% year-on-year in 2016, the fastest consolidated growth rate since 2007, when revenue growth measured 11%. Part A revenues were up 10% and Part B revenues by 3%. Combined Part A and B expenditures increased by 0.2%. Wage expense is the local authorities’ largest single expenditure item. These are among the findings published in Íslandsbanki Research’s new report on the local government sector.

Because revenues increased proportionally more than expenditures, the consolidated operating results before financing and irregular items improved from just under ISK 18bn to more than ISK 45bn, or 152%. The turnaround lies mainly in Part A operations, which generated a deficit of ISK 8.6bn in 2015 but a surplus of ISK 18.2bn in 2016.

Íslandsbanki Research expert Elvar Orri Hreinsson, author of the report:

 “It is gratifying to see Iceland’s municipalities make such vast improvements in their operating results, which are better than they have been since 2007. They have reduced their debt rather steadily since 2009, creating scope for further infrastructure investment. Wage agreements and increased pension obligations have adversely affected the results in the recent term, but those effects were considerably less in 2016. It is both beneficial and important for Íslandsbanki and the general public to keep abreast of developments in the municipalities’ position.”

 [acb1]ATH ísl: vantar T í ánægjuleg(t).

Older news

Íslandsbanki hf.: 1Q 2018 Consolidated unaudited interim financial statements

08.05.2018 - IR Releases
Profit after tax was ISK 2.1bn (1Q17: ISK 3.0bn) generating a 4.8% return on equity (1Q17: 7.0%). Earnings from regular operations were ISK 2.9bn...More

Islandsbanki hf.: Íslandsbanki issues SEK 1 billion callable 4-year bond (4NC3)

19.04.2018 - IR Releases
Íslandsbanki has today issued a SEK 1 billion 4NC3 Floating Rate Note senior unsecured bond, at a spread of 80 basis points over 3-month STIBOR.More

New tourism industry report

According to Íslandsbanki’s new tourism industry report, Airbnb is now three times larger in the domestic market than all of Iceland’s guest houses...More

Sales process of Iceland Drilling initiated

A sales process has been initiated for the sale of all shares in Iceland Drilling. Iceland Drilling is owned by SF III, a fund managed by Stefnir...More

Lyf og heilsa acquires constrction company Trésmiðjan Börkur

The owners of Börkur hf. have come to an agreement on the sale of a 100% stake in the company to Lyf og heilsa hf. Delivery of the company to its new...More

Íslandsbanki Annual General Meeting 2018

22.03.2018 - IR Releases
Íslandsbanki’s Annual General Meeting (AGM) was held today, Thursday 22 March 2018, at 15:00 hrs., at the Bank’s headquarters in Hagasmári 3...More

Year 2017 reports

14.02.2018 - IR Releases
Íslandsbanki released its annual financial results for 2017 this morning. The Bank has now published its Annual Audited Financial Statements, Annual...More