Íslandsbanki’s 9M results for 2011

07.12.2011 - Financial Results
  • Annualised return on equity was 11.9%, which is in line with the return targets of the Icelandic State Financial Investments and the Bank's other owner
  • The total capital ratio at the end of the period was 28.8%, well above the Financial Supervisory Authority minimum requirements
  • Tax charges and National Insurance for the period estimated to be ISK 4,143m
  • Total cumulative write-offs and debt adjustments for individuals and households, since the Bank's establishment, amount to ISK 280bn
  • Around 17,700 individuals and 2,700 companies have received some form of write-offs or debt relief at the Bank

Íslandsbanki´s results for the period ended 30 September 2011 rendered a profit after tax of ISK 11,346m. The Bank's total capital ratio was 28.8% at the end of the period which is substantially higher than the 16% regulatory requirement set by the Financial Supervisory Authority (FME). Annualised return on equity was 11.9% which is in line with the target rate of return set by the Icelandic State Financial Investments as a requirement for financial institutions which the government holds an interest in[1].

Income statement

  • Profit after tax was ISK 11,346m compared to 13,151m for the first nine months of 2010.
  • Net interest income was ISK 24,151m compared to ISK 25,747m in 2010. The year on year decrease is mainly due to decreasing interest rates.
  • Net fee and commission income was ISK 4,366m compared to ISK 5,234m in 2010. The decrease is due to changes in ownership of Borgun, a former subsidiary of the bank.
  • Tax and National Insurance for the period amounted to ISK 4,143m. Thereof, income tax was ISK 3,097m, bank tax was ISK 162m, National Insurance was ISK 537m and a new two year tax introduced to finance tax credits for mortgage holders was ISK 347m.
  • Net valuation changes on loans and receivables amounted to a charge of ISK 831m compared to a gain of 2,240m in 2010.
  • Net foreign exchange gain was ISK 408m compared to a loss of ISK 2,354m in 2010.
  • Premiums to the Investors' and Depositors' Guarantee Fund during the period amounted to ISK 684m.
  • The cost / income ratio for the consolidated company was 50.6% compared to 42.0% for the same period in 2010. The cost/income ratio for the parent company was 46.9% for the period.
  • Total salary expenses for the group amounted to ISK 7,109m compared to ISK 6,691m in 2010. The increase is largely explained by collective salary agreement increases as well as an increased number of employees in relation to restructuring projects.
  • The average number of full time equivalent employees (FTEs) for the group was 1,322 at the end of the period compared to 1,080 in 2010. The difference is mainly explained by new subsidiaries, held for sale, joining the group, e.g. Jardboranir hf.

Balance Sheet

  • Total assets at 30 September 2011 were ISK 679bn which represents little change from year-end 2010.

 

[1] Report on the operations of Icelandic state financial investments, 2011 (in Icelandic only)

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