Glitnir banki hf. - Financial Statement Release

Glitnir publishes Annual Accounts 2007

Correction on message catecory
               Glitnir Bank Full-Year Results for 2007
            ISK 27.7 billion (EUR 315 m) profit after tax
                       19.3% Return on equity

Financial Highlights
*      Net income increased by 17.2% year-on-year
*      Pre-tax profit in Q4 was ISK 3.8 billion compared ISK 10.4
  billion in Q3
*      Net interest income in Q4 was ISK 11.9 billion, up by 54.6%
  from Q4 06
*      Fees and commissions increased by 7.8% in Q4 and amounted to
  ISK 10.6 billion
*      52% of pre-tax profit was generated outside of Iceland in 2007
*      Earnings per share for 2007 amounted to ISK 1.86, as compared
  to ISK 2.68 in 2006
*      Total assets amounted to ISK 2,949 billion, up from ISK 2,246
  at the beginning of 2007
*      Assets under management decreased by 6.7% QonQ, by the sale of
  Glitnir Property Holding, but increased by 91% over the year
  amounting to ISK 936 billion at year-end
*      Capitalization with CAD ratio at 11.2%, and Tier 1 ratio at
  8.1%

Operational Highlights
*      Core income is solid, increasing by 36% year on year
*      Glitnir number two equity broker by turnover in the Nordic
  Region
*      Profits in Q4 are affected by unfavourable market conditions
*      Costs above acceptable levels which can partly be explained by
  one-off costs
*      Strong liquidity position in challenging markets
*      Growth strategy focused on niches proven successful

Lárus Welding, Chief Executive Officer says: "Looking at the results
I am pleased to see stable growth in net interest income and fees and
commission. Net fees and commission have been consistent throughout
the year, totalling ISK 37.6 billion, which is a 42% increase year on
year. I am very pleased to see that the income from core operations
is growing again at a brisk pace of 21%. Glitnir is furthermore
reporting a healthy growth in revenues by 17.2% and we have a stable
loan portfolio to secure strong net interest income into the year.""Glitnir's three niches, seafood, geothermal energy and offshore
supply vessels are growing as a proportion of our loan book, from 11%
in 2006 to 13% in 2007. Our focus on our niches is an important
investment in Glitnir's future growth. Additionally, Glitnir has
become one of the leading players in the Nordic Equity and Brokerage
market.""2007 was a year where Glitnir invested in growth. This is clearly
reflected in the increase in costs relating to integration of our
business units, opening of new operations as well as in one-off costs
relating to management change. However we are now moving to wards a
more focused organizational structure, which makes Glitnir well
equipped to increase efficiency and control costs through strong
regional leadership, with clearer profit and loss responsibility and
simple lines of reporting.""The past few months have been challenging for all financials
institutions but Glitnir is in a good position to deal with the
situation, with a comfortable liquidity position of more than EUR 6
billion of immediately available funds and a good underlying revenue
base. Our loan portfolio is well diversified and of high quality.""I am confident that our focused strategy creates a solid platform
for sustainable growth in all our lines of business", says Lárus
Welding.


For further information please
contact:
Lárus Welding Alexander K.     Bjørn Richard       Vala Pálsdóttir
              Guðmundsson      Johansen
CEO           CFO              MD Corporate        Head of Investor
                               Communication       Relations
Tel: +354 440 Tel: +354 440    Tel: + 47 47 800    Tel: +354 440 4989
4005          4656             100
                               vp@glitnir.is       brj@glitnir.no

Attachments:

Glitnir Bank Consolidated Financial Statements 2007

Glitnir Bank PresentationQ407

Glitnir Bank full year results 2007