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Straumur - Burdaras hf Straumur-Burdaras Investment Bank results for the first half of 2008 Consolidated profit after tax € 20.8m
Chief results for the first half of 2008 * Profit after tax was € 20.8m for the first half of 2008. Profit before tax amounted to € 4.3m. * Operating income totalled € 81.5m in the first half. * Client-driven income, comprising net interest and net fee and commissions, is up 12.0% from same period in 2007, at € 103.8m. * There was a loss of € 25.1m from trading and investment activities in the first half of 2008. * Operating expenses totalled € 62.0m for the first half 2008. * The cost income ratio for the first half was 76.1%. * Earnings per share in the first half were € 0.002. * Return on equity in the first half was 2.7%. * Total assets amounted to € 6.2bn at 30 June 2008, decreasing by 12.7% from the beginning of the year. * Assets under management totalled € 1.4bn at the end of first half 2008. * The CAD ratio was 25.4% at the end of the period. The Tier 1 capital ratio was 23.2%. * The Bank's liquidity position is strong with expected liquidity of more than 365 days.
Chief results for the second quarter of 2008 * Loss after tax was € 1.4m in the second quarter. The loss before tax was € 20.2m. * Operating income for Q2 2008 was €15.3m. * Client-driven income totalled € 49.8m in Q2 2008 comprising net interest income of € 23.9 and net fee and commission income of € 25.9m. * Net losses from trading and investment activities amounted to € 36.0m in Q2 2008. * Operating expenses continued to fall and were € 26.9m in Q2 2008. * There was a tax credit of € 18.7m in the period, including one-off adjustments of € 10.6m.
William Fall, CEO of Straumur "Our focus has been to manage the Bank through difficult times, and we have done so by establishing stable income bases in spite of volatile markets, maintaining our capital strength, preserving our liquidity, reducing our risk and significantly cutting costs. At the same time, we have continued to strengthen our platform and seek new opportunities. Losses on some trading positions in the second quarter demonstrate how crucial it is to have diversified the business in the way we have. They do not obscure the progress we are making on that front, shown by the 12% year-on-year increase in customer-driven revenues in the first half."
€ m H1 2008 H1 2007 Q2 2008 Q1 2008 Q4 2007 Client-driven income* 103.8 92.7 49.8 53.9 59.8 Operating income 81.5 240.7 15.3 66.2 56.5 Operating expenses (62.0) (42.3) (26.9) (35.1) (46.7) Profit (loss) before tax 4.3 191.0 (20.2) 24.4 1.4 Profit (loss) for the period 20.8 163.4 (1.4) 22.3 (0.6) Cost to income % 76.1 17.6 Earnings per share € 0.002 0.017 Annualised ROE % 2.7 23.8 CAD % 25.4 28.4
Further information can be obtained from: Stephen Jack, CFO stephen.jack@straumur.net +44 7885 997570
Georg Andersen Head of Corporate Communications georg.andersen@straumur.net +354 858 6707
Presentation in Reykjavík A presentation will be held for shareholders and market participants at Hilton Reykjavík Nordica, Suðurlandsbraut 2, on Wednesday 30 July 2008. The CEO and the CFO of Straumur Investment Bank will present the Bank's operating results and answer questions. The presentation will take place in English. It will be possible to follow events at the meeting in real-time on the Bank's website: www.straumur.net/webcast. Information will be available after the meeting on Straumur's website, www.straumur.com, and on the OMX Nordic Exchange Iceland's website, www.omxnordicexchange.is.
The meeting will begin punctually at 09:30 a.m. Refreshments will be offered beginning at 09:00 a.m.
Agenda: 09:00 Doors open and refreshments served 09:30 William Fall, CEO, and Stephen Jack, CFO, present the results and respond to questions from the audience 10:30 Meeting concludes
Meeting chair: Georg Andersen, Head of Corporate Communications.
