Glitnir Bank first quarter results for 2008

The Nordic bank, Glitnir presents first quarter results for 2008, showing ISK 7.7 billion (EUR 76m) profit before tax and total recognised income in equity ISK 28.4bn (EUR 280m). The Bank also points to a strong liquidity position of EUR 8.7.

Financial Highlights
• Profit before tax was ISK 7.7bn up 102% from Q4 07
• Net operatin g income highest ever, ISK 25.6bn up 29% from Q4 07
• Net interest income ISK 13.8bn, up 16% from Q4 07
• Fees and commissions were strong, ISK 10.6bn a slight increase from Q4 07
• Positive development in expenses, down 12% from Q4 07 to ISK 13.8bn
• The real growth of the loan portfolio was 4% in Q1 08
• Liquidity position strengthened to EUR 8.7bn
• CAD ratio strong at 11.0%, and Tier 1 ratio at 7.7%

Operational Highlights
• Core earnings continue growth phase, growing 12.6% on average (CQGR) from Q1 07
• Core profit before tax, growing 46% QoQ and 21% YoY
• Cost income ratio down to 54% from 79% in Q4 07
• Strong performance by Capital Markets, Corporate Banking and Investment Banking units in Q1 08
• A healthy pipeline of deals in the Niches and ECM, niches with 60% of advisory fees in Q1 08
• Capital Markets in Iceland capitalising on the volatility from FX and securities
• Glitnir the 2nd largest broker in the Nordic region, gaining market share to an all time high of 7.37%

Lárus Welding, Chief Executive Officer says: “Glitnir performed well in the first quarter through a very challenging market conditions for all financials. In spite of these conditions, Glitnir has demonstrated its inherent strengths and these results confirm the Bank’s underlying resilience and flexibility.

It has been necessary for all financial institutions to focus on increasing internal efficiencies to provide consistent levels of profitability and to increase competitiveness. The second quarter will see a continuing focus on increasing income, preserving our liquidity position whilst managing our cost base.”

For further information please go to the Glitnir website.