Results for the first nine months of 2006
BANKING ACTIVITIES ON SOLID GROUND
ISK 8 BILLION IN INTEREST INCOME, FEES, AND COMMISSIONS
DURING THE FIRST NINE MONTHS OF THE YEAR
Fridrik Jóhannsson, CEO:
“The management of Straumur-Burdarás is extremely proud of the Bank’s successful performance during the first nine months of the year. Net interest income, fees, and commissions totalled ISK 8 billion during the period, which is a ninefold increase over and above the same period a year ago. All of the Bank’s divisions are turning in good results, and there is continued growth in revenue streams beyond capital gains. This is in line with Straumur-Burdarás’ strategy and fortifies the Balance Sheet even further. During the third quarter, commission income has been high, interest income has held stable, and the asset and loan portfolios are reliable. This performance for the first nine months of the year represents a record profit in the history of the Bank’s operations.”
Record profit in the first nine months of the year
* After-tax profit in the third quarter of 2006 totalled ISK 1,549 million, as opposed to ISK 6,473 million during the same period a year ago, which is a 76% decrease. After-tax profit for the first nine months of the year 2006 amounted to ISK 20,936 million, as compared with ISK 14,103 for the first nine months of 2005. This is a 48% increase.
* Net income from operations in the third quarter decreased by 67% year-on-year and amounted to ISK 2,804 million, compared to ISK 8,480 million for the same period in 2005. For the first nine months of 2006, net income from operations totalled ISK 28,220 million, as opposed to ISK 17,977 million for the same period during the prior year. This represents a 57% increase over the year 2005.
* Return on equity (ROE) was 19.4% for the first nine months, which corresponds to 26.6% annualised ROE.
* The cost-income ratio was 7.8% for the first nine months of the year 2006, whereas it was 3.8% in the first nine months of 2005.
Please find attached the full report