Straumur-Burdarás presents Q1 2007 results

Thursday, 26. April 2007 10:16

Straumur-Burdaras Investment Bank ("Straumur-Burdaras")
Results for the first three months of 2007


Fridrik Jóhannsson, CEO:
"We are extremely pleased to announce our first results in Euros
which is a very important milestone towards our goal of becoming an
international investment bank. The transition has been a successful
one. We continue to increase our fees and commissions and our results
in the first three months are in line with our strategy and
objectives: stable income sources and further diversification in our
operations. Straumur-Burdaras currently has operations in four
countries, but we have begun to prepare for the opening of a branch
in Stockholm, Sweden. Key personnel have been recruited there and
will begin to operate in the months to come. We intend to grow this
year: in the Nordic region, in the UK, and in mainland Europe if some
promising opportunities arise."

Results according to objectives
* After-tax profit for the first quarter 2007 totalled EUR
69.16 million, as opposed to EUR 217.51 million during the same
period last year when the Bank sold its 21.05% share in Glitnir,
then Íslandsbanki.
* Net income from operations in the first quarter amounted
to EUR 92.52 million, compared with EUR 276.02 million for the same
period in 2006.
* Return on equity (ROE) was 4.6% for the first three
months, which corresponds to 19.9% annualised ROE. This is in
keeping with the Bank's plans.
* The cost-income ratio was 13.2% for the first three
months of 2007, whereas it was 8.0% in the first three months in
2006. The Bank will continue to invest in further growth in core

Continued increase in fees and commissions
* Net commission income amounted to EUR 30.29 million for
the first three months 2007, as against EUR 26.98 million for the
same period in 2006, an increase of 12% year-on-year.
* Net interest income in the first three months 2007 was
EUR 11.16 million, while it was EUR 5.53 million for the same
period in 2006.

Strong Balance Sheet
* The Bank's total assets at EUR 5,191.56 million at the
end of the first quarter, compared with EUR 4,357.76 million at
year-end 2006, have increased by 19% since the beginning of the
* The Bank's CAD ratio was 32,8%, with a Tier 1 capital
ratio of 30,3%. In comparison, at year-end 2006 the CAD ratio was
37.59% and the Tier 1 capital ratio 35.20%.
* Shareholders' equity amounted to EUR 102.18 million at
the end of the first quarter, after the deduction of own shares.

Executing strategy in Balance Sheet composition
* Straumur-Burdaras' loan portfolio increased from EUR
1,352.07 million at the beginning of 2007 to EUR 1,706.90 million
at the end of the first quarter, an increase of 26% year-on-year.
* The ratio of interest-bearing assets in the Balance Sheet
has risen by four percentage points from the year 2006: from 59% to

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