SPRON Verðbréf hf. - Annual report/ annual accounts

- Annual results 2007

Net after-tax profit ISK 3.3 billion
Return on equity (ROE) 11.5%
Highlights from the year 2007:

• Pre-tax profit of ISK 3.3 billion
• Return on equity after-tax was 11.5%
• Net interest income amounted to ISK 9.2 billion
• Core earnings ISK 4.9 billion and pre-tax ROE 17.1%
• Customer deposits 53% of loans to customers
• Customer deposits increased by 51% from year end 2006
• Total assets amounted to ISK 224.2 billion at year end 2007, an increase of
  22% from year end 2006
• Loans to customers amounted to ISK 161.6 million, an increase of 26% from
  year end 2006
• A solid loan portfolio - 60% of loan portfolio are loans to individuals and
  80% of the portfolio are mortages
• Equity at year end amounted to ISK 27.8 billion
• The bank's capital adequacy ratio was 13.4% at year end. Tier 1 capital was
  19.9% 
• Strong funding position - no refinancing of larger loans until september 2009
• SPRON converted into a public limited company and listed on OMX Nordic
  Exchange in October 2007
• 19.4% share in Icebank sold in November 2007
• Office opened in Berlin, Germany


Gudmundur Hauksson CEO: 
“With a profit of ISK 3.3 billion the results for 2007 are satisfactory given
the difficult circumstances in the financial markets.  The Group's core
business has improved and both interest and commission income have increased
year on year. Customer deposits have increased by 51% and both SPRON´s
commercial banking unit and Netbankinn, a wholly owned subsidiary, are financed
entirely through deposits from customers. For the Group as a whole customer
deposits represent 53% of loans to customers.  The Group's liquidity position
is strong and only one long-term loan will mature during the year, amounting to
EUR 20 million, which we have already financed. The CAD ratio is 13.4% and a
decrease in market value of our strategic holding in Exista has an
insignificant effect on the ratio.  During 2008 our focus is on streamlining
the business after significant growth in recent years as well as decreasing
costs and improving efficiency.  We are therefore in a strong position to meet
the adverse circumstances in the financial markets and take advantage of
opportunities that may arise.”

Priedai:

annual accounts 311207.pdf

press_release_6_02_2008.pdf