KB Bank posted first half results yesterday, showing profit of ISK 24.77 billion (EUR 315 million) for the first six months of 2005, a 280% year-over-year increase. This is 200 million ISK higher than the first half record-breaking profit posted by Burdarás last week. Profit for the second quarter 2005 increased 292% year-over-year to ISK 13.67 billion (EUR 174 million).
Television station Stöd 2 pointed out last night that this makes KB Bank bigger than Iceland. The banks assets, ISK 1.899 billion, are more than the combined assets of Icelandic households according to Icelandic tax returns.
Kaupthing’s first half profit is more than the combined profit of Landsbanki and Íslandsbanki.
In a released statement Hreidar Már Sigurdsson, CEO of KB Bank said, “Our second quarter results illustrate that the Bank is performing well in all key market areas. Return on equity during the first half of the year was 36%, which is most satisfactory, and at the same time the cost to income ratio continued to fall. Our acquisition of the British bank Singer & Friedlander is an important milestone for the Bank and brings us closer to attaining our goal of becoming one of the leading investment banks in northern Europe. Singer & Friedlander brings on board some 600 dedicated professionals to join the trusted team already in place across the group, and the majority of the Bank’s employees are now located outside Iceland. The strength of the Bank’s underlying operations form the foundations on which our employees can continue to execute our growth strategy in the future.”
Landsbankinn posted a ISK 11 billion first half 2005 profit up from ISK 6 billion for the same period 2004.
In a released statement Sigurjón Þ. Árnason GMD of Landsbankinn said, “Landsbanki’s performance in the first half of 2005 is exceptional. A look at the development of net interest and commission income, which are core aspects of the Bank?s operations, reveals just how strong the Bank has grown. Net interest and commission income amounted to a total of ISK 17 billion past six months, as compared to ISK 10 billion in the first half of 2004 and ISK 7.2 bn in H1 2003. This is an increase in the Group’s basic income generation of almost 140% in the space of two years, despite a drop in its interest margin from 3% to 2.1%. The Bank’s total assets are now over ISK 1 trillion. Those assets increased by ISK 285 bn during this period, and to give that some perspective, in the spring of 2003, the Bank’s total assets amounted to ISK 285 bn. It is also noteworthy that this increase in the Bank’s total assets is based entirely on organic growth, both in Iceland and abroad. Landsba nki has been steadily building up its strength recently and here we see the consequences.”
In a released statement Halldór J. KristjánssonGMD of Landsbankinn said, “The Bank’s results reflect the increasing variety of its services and diversification of risk in its operations and balance sheet. Income from operations abroad have more than tripled from the same period of the previous year, with lending to parties abroad now around 35% of the Group?s total lending as compared to 9% at the beginning of 2003. Landsbanki took a major step towards further growth and expansion abroad with the establishment of a branch in London and acquisition of the UK securities house Teather & Greenwood. These actions, together with the growing strength and profitability of Heritable Bank in London and Landsbanki Luxembourg, have brought the Group closer to its objective of providing international financial services as a corporate and investment bank.”
