Íslandsbanki hf (NO) - Íslandsbanki nine months results 2005

Íslandsbanki nine months results 2005

ISK 15,358 Million in Profit after Tax
34% Return on Equity

The highlights of the financial statements of Íslandsbanki hf. for the 9 months of 2005 are as follows:

- Íslandsbanki had a record profit for the first 9 months. After-tax profit for the third quarter was ISK 4,801 million compared with ISK 3,653 million in the third quarter of 2004. After-tax profit for the first nine months of 2005 was ISK 15,358 million compared to ISK 11,010 million in 2004, increased by 40%. Comparison figures for 2004 have been restated in accordance with International Financial Reporting Standards.

- Pre-tax profit was ISK 18,151 million for the first 9 months of 2005 compared to ISK 13,112 million 2004.

- First 9 months´ EPS was 1.20 compared to 1.10 for the same period 2004. EPS in Q3 was ISK 0.37.

- First 9 months´ after-tax ROE was 34%, compared with 61% for the same period 2004. EVA for the period was ISK 9,370 million similar as for the same period in 2004.

- Net interest income increased by 90% to ISK 16,764 million. Net interest income for Q3 was ISK 6,713 million, compared to ISK 2,945 million in Q3 2004.

- First 9 months´ cost-income ratio was 36.1% and 35.9% in the third quarter.

- Net interest margin was 2.1% in the first nine months of 2005, a decrease from 2.4% for the same period in 2004. In part this is explained by BNbank in the consolidated figures. BNbank is also making a transformational increase in balance sheet figures.

- Total assets amounted to ISK 1,319 billion at the end of the quarter, up by ISK 641 billion or 95% from 31 December 2004.

- Total lending grew by 105% in the first nine months and was ISK 1,063 billion at the end of September.

- Loans to other than credit institutions grew by ISK 53 billion or about 5%, adjusted for the strengthening of the ISK and transfers of loans to financial assets designated at fair value through P&L.

- Deposit growth was 102% in the first nine months up to ISK 360 billion.

- Assets under management grew by 4% in Q3, and 21% in the first 9 months bringing to ISK 311 billion.

- Book equity was ISK 76 billion at the end of Q3. The CAD ratio was 12.3% and Tier 1 ratio was 9.4%.

- The Board of directors has revised financial targets for the group aiming to stronger growth aligned with solid financial fundamentals.


Bjarni Ármannsson, CEO:
"All units are showing good performance in line with our expectations. It is particularly satisfying to note the turnaround in the Commercial Banking division in Iceland and the increase in the number of international advisory and lending projects. The period was also characterised by internal development within the Bank in numerous areas and we are already seeing positive results. Overall the results and achievements are good in the 3rd quarter. I believe that we are on a growth track and all set for continued execution of our strategy".


For further information please contact:
Bjarni Ármannsson
CEO
Tel: +354 440 4005

Tómas Kristjánsson
CFO
Tel: +354 440 4656

Information for Investors:
Vala Pálsdóttir
Investor Relations
Tel: +354 440 4989 / +354 844 4989
E-mail: vala.palsdottir@isb.is

The accounts of the Bank are available on its website: www.isb.is.

The press release including tables can be downloaded from the following link:
http://hugin.info/135333/R/1017667/159516.pdf

The Consolidated Interim Financial Statements 1 January - 30 September 2005 can be downloaded from the following link:
http://hugin.info/135333/R/1017666/159515.pdf




The issuer is solely responsible for the content of this announcement.

This release was published on openPR.