2016-02-23 09:36:52 CET

2016-02-23 09:36:52 CET


BIRTINGARSKYLDAR UPPLÝSNINGAR

Íslandsbanki hf. - Financial Statement Release

Islandsbanki hf. : 2015 Consolidated Annual Financial Statements 


Íslandsbanki's 2015 Consolidated Annual Financial Statements



Highlights:
  * Profit after tax was ISK 20.6bn in FY15 compared to ISK 22.7bn in FY14. The
    difference is mainly due to irregular items and the appreciating Icelandic
    Krona.
  * Return on equity was 10.8% in FY15, compared to 12.8% in FY14.
  * Underlining profitability rising, earnings from regular operations were ISK
    16.2bn in FY15 compared to ISK 14.8bn in FY14.
  * Return on equity from regular operations on 14% CET1 was 13.2% in FY15
    compared to 12.6% in FY14.
  * Net interest income amounted to ISK 28.0bn in FY15 (FY14 ISK 27.1bn). The
    net interest margin was 2.9% in FY15 (FY14: 3.1%).
  * Net fee and commission income was ISK 13.2bn in FY15 (FY14 11.5bn), a 15%
    year on year increase; thereof 6.7% was achieved in the parent company.
  * Cost to income ratio was 56.2% in FY15 (FY14: 57.7%). Cost to income-ratio
    excludes Bank tax and one-off cost items.
  * Loans to customers grew by 5% in the year to 665.7bn. The increase is well
    diversified across various lending units.
  * Total assets amounted to ISK 1,046bn (Sep15: ISK 1,004bn).
  * Deposits from customers increased by 2.1% in the last quarter to ISK 593bn.
  * The Bank issued several successful foreign denominated bond transactions
    during the period in NOK, SEK, and EUR
  * Total capital ratio remains strong at 30.1% (Sep15: 29.2%) and Core Tier 1
    ratio was 28.3% (Sep15: 26.9%).
  * The Bank's liquidity position is strong and exceeds internal and external
    requirements.
  * Leverage ratio was at 18.2% at the end of the period compared to 19.5% in
    FY14, indicating a moderate leverage.
  * Ratio of loans more than 90 days past due and impaired was 2.2% (Sep15:
    2.4% and FY14 3.5%).
  * S&P placed the Bank's BBB-/A-3 rating to a positive outlook in January
    2016, but earlier in the year the Bank was upgraded to investment grade.
    Previously, Fitch had assigned a BBB-/F2 rating in April, but Íslandsbanki
    is the only Icelandic bank to have ratings from S&P and Fitch.


Birna Einarsdóttir, Chief Executive Officer at Íslandsbanki:
2015 was a successful year for Íslandsbanki, and the Bank's performance exceeded
expectations. Fee and commission income grew 14.7% year-on-year and interest
income by 3.3%. The Bank's core operations continued to strengthen, and the
profit on regular operations grew 9.1% from the prior year. Significant changes
took place in our customer service and digital channels. About 50,000 people
have downloaded the Íslandsbanki app, and the number of active users rose 41%
from the prior year. The successful launch of our new payment intermediation
app, Kass, has helped us to provide our customers with even better service. Two
of the Bank's branches merged last spring, when the new Grandi branch was
opened. This autumn, three branches will merge to form a new, state-of-the-art
branch in the North Tower of Smáralind shopping centre.
Íslandsbanki recently received top marks in the banking market, scoring very
high on the Icelandic Customer Satisfaction Index. We are exceedingly proud of
the progress we have made and are moving forward with our vision of providing
the best banking services in Iceland.
During the year, Standard & Poor's upgraded the Bank's credit rating to
investment-grade, and at the beginning of 2016 it revised the outlook on the
rating to positive. The Bank received a BBB- rating from Fitch Ratings during
the year, making it the only Icelandic bank with investment-grade ratings from
both agencies.
It was announced in 2015 that Íslandsbanki would be part of Glitnir's stability
contribution to the Icelandic Government. The Bank is well prepared for the sale
process when its new owner decides to begin it.


Investor Presentation in Icelandic at 12.30pm

Later today at 12.30 pm Icelandic time, Birna Einarsdóttir, CEO of Íslandsbanki,
and Jón Guðni Ómarsson, CFO, will present the FY2015 financial results to market
participants, followed by a Q&A session. The meeting is conducted in Icelandic
and held at the Bank's headquarters at Kirkjusandur.

Registration to the investor meeting at Kirkjusandur.

Investor call in English at 2pm

The Bank will also host an investor call in English to present the results at 2
pm Icelandic time. The call will start with a short macro update on the
Icelandic economy, followed by a review of the financial results and Q&A. Please
register by replying to ir@islandsbanki.is. Dial-in details and presentation
will be sent out two hours prior to the call.

All presentation material will subsequently be available and archived on
www.islandsbanki.is/ir.

For information on Íslandsbanki's financial calendar and silent periods see
http://www.islandsbanki.is/english/investor-relations/calendar/.



For further information:

  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is, tel
    +354 440 3187.
  * Media Relations - Edda Hermannsdottir, edda.hermannsdottir@islandsbanki.is
    and tel: +354 440 4005.


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