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

Islandsbanki hf.: Íslandsbanki issues 10NC5 Tier 2 bond of SEK 750 million

16.11.2017 - IR Releases
Íslandsbanki has today issued a SEK 750m 10NC5 Tier 2 transaction. The bond pays a quarterly coupon of 3 month STIBOR +200bps.More

New Íslandsbanki housing market report

If Íslandsbanki Research’s forecasts are borne out, house prices will rise by just over 20% year-on-year in 2017 and just under 12% in 2018. More

Interruption in online banking due to computer system installation at Landsbankinn

On the weekend of 18-19 November, Landsbankinn and the Icelandic Banks' Data Centre (RB) will be installing a new computer system. Landsbankinn’s...More

Islandsbanki hf. : 9M 2017 Consolidated unaudited interim financial statements

09.11.2017 - IR Releases
Íslandsbanki's consolidated unaudited interim financial statements 9M 2017More

S&P upgrades Íslandsbanki to BBB+/A-2 with stable outlook

25.10.2017 - IR Releases
International credit rating agency S&P Global Ratings (S&P) upgraded Íslandsbanki’s credit ratings from BBB/A-2 to BBB+/A-2 today, with a stable...More

Icelandic Group Agrees Sale of Seachill to Hilton Food Group

Icelandic Group is pleased to announce the sale for cash of its UK-based subsidiary Icelandic Group UK (“Seachill”), to Hilton Food Group (“Hilton”)...More

Íslandsbanki Reykjavík Marathon 2017 breaks record in pledges to charity

As of last night’s midnight deadline for pledges to charity in connection with the Íslandsbanki Reykjavík Marathon, the amount pledged on the...More