2007-11-20 14:02:46 CET

2007-11-20 14:02:46 CET


SÄÄNNELTY TIETO

Englanti Islanti
Icebank - Quarterly report

- 3Q Results 2007 


Icebank's expansion strategy pays dividends:
Total assets more than doubled over the year
 - Net interest income increased by 66% from last year



Icebank's business activities in the third quarter were characterised by strong
growth, as the Bank continued to strengthen its position, particularly in
business with other financial institutions. Even though the third quarter
returned only ISK 65 million in profit after taxes, profit after taxes in the
first nine months amounted to ISK 4,263 million, and return on equity was
47.3%. This year, the Bank is for the first time publishing quarterly
statements that have been reviewed by the Bank's auditors; however, the
comparison figures for last year are unaudited. The statements are prepared in
accordance with International Financial Reporting Standards (IFRS).
 
Third quarter of 2007

•  Profit after taxes amounted to ISK 65 million in the third quarter, as
   compared to ISK 2,399 million in the second quarter.
 
•  Earnings per share fell as compared to the second quarter, from ISK 2.10 to
   ISK 0.06. 

•  Total assets grew by more than ISK 80 billion over the quarter, or 68.7%. The
   growth is primarily a result of increased lending and claims against
   financial institutions, as well as derivatives contracts with customers. 

•  Personnel grew by 10% over the third quarter, with 88 positions in the Bank
   at the end of the quarter. 

First nine months of 2007

•  Profit amounted to ISK 4,263 million after taxes in the first nine months of
   the year, as compared to ISK 6,195 million in the preceding year.  
 
•  Net interest income increased by 66% between years, while profit from the
   Bank's securities portfolio fell by just short of 50%. The biggest factor was
   the fluctuation in the value of the Bank's holdings in Exista.
 
•  Earnings per share amounted to ISK 4.22, as compared to ISK 9.43 for the
   corresponding period last year. 

•  Return on equity was 47.3%, as compared to 94.9% in 2006. 

•  The cost-income ratio was 14.2%, compared to 7.1% for the corresponding
   period of 2006. 

•  The interest rate margin increased from 1.9% last year to the current level
   of 2.0%.
 
•  The Bank's staff has grown in size by 26% over the year, to 88 employees at
   the end of the period. The increase is spread over all the Bank's divisions. 

Finnur Sveinbjörnsson, CEO:
“Icebank has markedly strengthened its position in its business with financial
institutions over the quarter, building on its experience of the last 20 years
as a service and central bank for the savings banks. This is manifested in the
rapid growth in the Bank's total assets, which passed the ISK 200 billion mark
at the end of the quarter, having more than doubled since the start of the
year. It is primarily the interest-bearing assets that are growing, and for
this reason the Bank's net interest income has grown substantially. Curremtly,
net interest income is almost twice the amount of the Bank's entire operating
cost. This is unique among Icelandic financial institutions, and even overseas.
This places the Bank in a better position to meet any adverse winds in the
securities markets, as in fact was the case in the third quarter. The Bank
recently announced its acquisition of Behrens Corporate Finance as well as its
first steps in opening the ownership of the Bank. We are looking forward to an
exciting time of continued growth.” 

For further  information, please contact:
Finnur Sveinbjörnsson, CEO, finnur@icebank.is, tel. +354 540 4000.
Hafdís Karlsdóttir, Managing Director, Operations, hafdis@icebank.is, tel. 354
540 4000. 
The financial statements in their entirety can be accessed at www.icebank.is.