Íbúðalánasjóður - Financial Statement Release

The Housing Financing Fund´s Condenced Interim Accounts, January - June 2011

Housing Financing Fund - 6M results 2011

The 6M results of the Housing Financing Fund (HFF) in 2011 were endorsed by the
Fund's Board of Directors today. HFF's operations were in surplus by ISK 1.5
billion (bn) during this period, as compared with a deficit on operations of
ISK 1.6 bn during this same period last year. The change can be attributed,
firstly, to a reverse entry of provisions for loan write-offs, as around 5,000
applications were received for the government's 110% solution whereas some
9,400 applications had been expected. Secondly, operating expenses have
increased YoY due to an increase in the number of employees processing
applications, managing real estate and working on the financial restructuring
of rental companies. In addition, appropriation of real estate has resulted in
high one-off costs. 

As of 30 June 2011, HFF's equity was just over ISK 10 bn, compared with ISK 8.6
bn at year-end 2010. The Fund's capital ratio, calculated as provided for in
Regulation No. 544/2004, on the Housing Financing Fund, is currently 2.4%, up
from 2.2% at the beginning of this year. The percentage is calculated in the
same manner as the capital adequacy ratio of financial undertakings.

Attachments:

HFF Interrim Accounts Jan - June 2011.pdf

HFF Press release Interrim Accounts Jan - June 2011.pdf