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Banks continue to make record profits

Morgunbladid reports that the largest Icelandic banks have continued to show record profits.

In the first quarter of 2006, Landsbanki reported earnings of ISK 14.3 billion; Glitnir (Íslandsbanki) ISK 9.1 billion; Kaupthing (KB-Banki) 18.1 billion; and Straumur-Burdarás ISK 19.1 billion.

Glitnir’s quarterly earnings tripled year over year; its annualized return on equity (after tax) was 42 per cent (32 percent excluding capital gains).

Kaupthing’s quarterly earnings increased by 69.5 percent since last year; its annualized return on equity (after tax) was 69.5 per cent (19.1 percent excluding capital gains and before tax).

Landsbanki’s earnings increased 135 percent since last year; its annualized return on equity (after tax) was 42 percent (32 per cent excluding capital gains).

(Straumur’s quarterly results were not immediately available on its website when Iceland Review investigated earlier today.)

Fréttabladid observed that the assets of the four major banks increased in the first quarter by ISK 1,300 billion, a number considerably greater then Iceland’s annual domestic production.

Fréttabladid also noted that the net assets of the Icelandic pension funds amounted to ISK 1,200 billion at the end of 2005.

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