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Straumur - Burdaras hf (ICE:STRB) Straumur-Burdaras Investment Bank hf. (Straumur, the Bank) wishes to provide the following information on its position in light of recent events in Iceland:
Straumur's capital adequacy ratio (CAD) is currently in excess of 20%, compared with the legal minimum of 8%. The Bank is managing its liquidity tightly and continues to meet all its obligations as they fall due.
Straumur had a positive net positition with Landsbanki Islands hf., Glitnir banki hf. and Kaupthing banki hf. on derivatives and debt instruments.
The Central Bank of Iceland informed Straumur on 20 October 2008 that as of 22 October 2008 it would introduce a 50% haircut on unsecured securities issued by the three aforementioned banks that have been used as collateral in repo transactions with the Central Bank. In response to this, Straumur has posted additional collateral with the Central Bank to the amount of approximately ISK 18.3 billion, which the Central Bank has accepted today.
William Fall, CEO of Straumur: "The strategy we have carried out for the past 18 months or so has enabled Straumur to manage through this difficult period. First, we have reduced our balance-sheet and instead placed more emphasis on client-driven income, which has also reduced our funding requirements. Second, we have developed an international platform and thus significantly reduced our reliance on Iceland. In the first half of this year for instance, two-thirds of our operationg income came from outside Iceland. Market conditions are still unfavourable to banks in general but our exceptionally strong CAD ratio and relatively limited funding needs work in our favour."
For further information contact: Ólafur Teitur Gudnason Vice President, Media Relations Corporate Communciations Tel: +354 858 6778 e-mail: olafur.gudnason@straumur.net
Georg Andersen Senior Vice President Head of Corporate Communications Tel: +354 858 6707 e-mail: georg.andersen@straumur.net
About Straumur Straumur (STRB) is a Northern and Central European investment bank offering a complete range of integrated financial services focusing on small and medium sized companies, institutional investors and individuals. The services provided include capital markets, corporate finance, debt finance, and asset management. Headquartered in Reykjavík, Straumur is Iceland's largest pure-play investment bank. The Bank has total assets of €6,201m as at the end of Q2 2008 and a long-term investment rating of BBB- from Fitch. Through organic growth and strategic acquisitions, the Bank has established operations in ten countries including the UK, Denmark, Sweden, Finland and the Czech Republic and now employs a team of 520 people. Straumur is rapidly delivering against its objectives to become the leading investment bank in Northern and Central Europe. www.straumur.com
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