Glitnir Bank half year results for 2007 ISK 16.5 billion (EUR 189 m) profit after tax

GLITNIR BANK PRESS RELEASE 31 JULY 2007

Glitnir Bank half year results for 2007
ISK 16.5 billion (EUR 189 m) profit after tax
24.2% return on equity

Financial Highlights
• Pre-tax profit for Q2 was ISK 11.3 billion, up by 34% from Q1 2007
• 45% of pre-tax profit was generated outside Iceland
• Net interest income in Q2 was ISK 9.7 billion up by 22% from Q1 07
• Fees and commissions increased by 22% in Q2 and amounted to ISK 8.9 billion
• Earnings per share for Q2 amounted to ISK 0.66 as compared with ISK 0.46 in Q1 07
• Total assets amounted to ISK 2,335 billion up from ISK 2,246 at the beginning of 2007
• Assets under management were ISK 913 billion as compared to ISK 541 billion in Q1 07
• Strong capitalization with CAD ratio at 13.2%, and Tier 1 ratio at 9.4%

Operational Highlights
• Glitnir was the 3rd largest brokerage in the Nordic equity market with a market share of 6.16% in 1H 07
• Successful alignment of the Finnish operation: consolidation and alignment in the final stages
• Management board strengthened with experienced Nordic executives
• 500 new employees join the group in the first six months
• Strong performance in three global niche sectors, seafood/food, geothermal energy and offshore supply
• Deposits increased by 11% to ISK 552 billion over the quarter

Lárus Welding, Chief Executive Officer says: “We are very pleased to report strong financial results in the second quarter. Leading the quarter's performance were strong profit achievement in Capital Markets, growth in Corporate Banking, and a substantial increase in fees and commission income. In addition, we have moved forward on our strategic initiatives, doubling assets under management with strong underlying growth in our Investment Management business. We are in the final stages of integrating FIM into the group and at the same time we are progressing with the consolidation of our Norwegian operations into one banking platform. The international management team of Glitnir remains confident that earnings will continue to increase, adding value for our shareholders. We have good momentum heading into the second half of the year and our goals are to maintain sustainable growth across all our businesses.”

For further information please contact:
Lárus Welding, CEO
Tel: +354 440 4005

Alexander K. Guðmundsson,CFO
Tel: +354 440 4656

Bjørn Richard Johansen, MD Corporate Communication
Tel: + 47 47 800 100
brj@glitnir.no

Vala Pálsdóttir, Head of Investor Relations
Tel: +354 440 4989
vp@glitnir.is