GROWING NORDIC INVESTMENT BANK
DELIVERING RECORD AFTER-TAX PROFIT OF ISK 45.2 BILLION IN 2006
RETURN ON EQUITIY (ROE) 42% IN 2006
FOURFOLD INCREASE IN FEES AND COMMISSIONS
Fridrik Jóhannsson, CEO:
"Straumur-Burdarás reports a net income of just over ISK 45 billion for the year 2006, bringing shareholders a return on equity of 42 per cent. These are outstanding results in a year characterised by profitable growth, foreign investments, and development of infrastructure. At the same time, we have ensured the Bank’s independence from the Icelandic market through new ventures in financing. The ratio of income and projects from overseas has grown significantly, granting the Bank a robust and diverse income base. This, along with strong investment operations, will ensure continued healthy return on our shareholders’ investments. Straumur-Burdarás is ready for additional internal and external growth. Our aim, to become a leading Nordic investment bank, is within reach."
AFTER TAX PROFIT IN Q4 ISK 24.2 BILLION – HISTORICAL RECORD
• After-tax profit for the year 2006 totalled ISK 45,211 million, as opposed to ISK 26,718 million in 2005, which is a 69% increase. After-tax profit for the fourth quarter of 2006 amounted to ISK 24,275 million, as compared with ISK 12,616 for the same period of 2005. This is a 92% increase.
• Net income from operations in the year 2006 quarter increased by 37% year-on-year and amounted to ISK 46,369 million, compared to ISK 33,871 million for the same period in 2005. For the fourth quarter of 2006, net income from operations totalled ISK 18,149 million, as opposed to ISK 15,894 million for the same period during the prior year. This represents a 14% increase over the year 2005.
• Return on equity (ROE) was 42% for the year 2006.
• The cost-income ratio was 8.0% for the year 2006, whereas it was 3.9% in the 2005.
FOURFOLD INCREASE IN FEES AND COMMISSIONS AND MULTIPLE INCREASE IN INTEREST INCOME
• Net commission income increased a little less than fourfold between years, totalling ISK 7,404 million for the year 2006, as opposed to ISK 1,951 million in 2005.
• Net interest income in the year 2006 was ISK 3,732 million, while it was negative in the amount of ISK 248 million in 2005; thus interest income for the year was many times higher than in the year 2005.
BALANCE SHEET ENABLING FURTHER GROWTH
• The Bank’s total assets amounted to ISK 412,288 million at year-end, as compared with ISK 259,349 million at year-end 2005, and have therefore increased by 59% since the beginning of the year.
• The Bank's CAD ratio was 37.59%, with a Tier 1 capital ratio of 35.20%. In comparison, at year-end 2005 the CAD ratio was 19.8% and the Tier 1 capital ratio 15.3%.
• Shareholders’ equity amounted to ISK 141,349 at the year-end 2006, after the deduction of own shares.
EXECUTING STRATEGY IN BALANCE SHEET COMPOSITION
• Straumur-Burdarás' loan portfolio has more than doubled in size, growing from ISK 48,911 million at the beginning of 2006 to ISK 127,844 million at year-end 2006.
• The ratio of interest-bearing assets in the Balance Sheet has risen by 59% from the year 2005.