Íbúðalánasjóður - Company Announcement

Monthly report October 2013

Decreased number of households in arrears and increased property sale

The HFF's monthly report for October has been published. As stated in the
report the number of households in arrears continued to fall in October. Their
number has decreased by just under 15%, or approximately 690 homes, since the
beginning of the year. The underlying loan value of individuals in arrears, as
a proportion of the fund's loan portfolio for privately owned homes, also
continues to drop. 

From the beginning of the year to the end of October, the HFF has sold 230
properties as opposed to 105 properties during the same period in 2012. In
addition, purchase offers for 79 properties have been accepted and bidders are
currently engaged in financing the purchases. 

Of the 2,549 properties that the HFF owned at the end of October 2013, 2,125
properties have been rented or are undergoing the sales process or other
procedures. A further 424 properties await assessment. Many of these are in
areas where there is a surplus of properties for sale and/or rent.

Attachments:

monthy report october 2013.pdf