Glitnir CEO: Bank in good condition

Nordic bank Glitnir has published its full year accounts for 2007, reporting stable growth and a 19.3 per cent return on equity despite months of market turmoil.

According to Glitnir Bank’s 2007 results announced this week, the Nordic bank is in a “good position to deal with the situation” following the financial turmoil of the past few months.

“The last months have been challenging for all financial institutions, but Glitnir is in a good position to deal with the situation,” said Larus Welding, Glitnir CEO, in the report.

Welding pointed to Glitnir‘s “comfortable liquidity… of more than EUR 6 billion [USD 9 billion] of immediately available funds and a good underlying revenue base”. He also said Glitnir‘s loan portfolio was “well diversified and of high quality”.

Highlights from the Glitnir report include post-tax total profits of ISK 27.7 billion (EUR 315 million, USD 470 million) and a 19.3 per cent return on equity. Net income also increased by 17.2 percent year-on-year.

Operationally, core income increased by 36 per cent over the year and Glitnir has become the number two equity broker by turnover in the Nordic region.

The Nordic bank, which focuses on three niche markets of seafood, geothermal and offshore supply vessel, saw the proportion of these sectors grow to 13% this year compared to 11% in 2006. The growth reflects the Glitnir‘s strategy to further develop these niches and will no doubt continue in 2008 with the bank‘s focus on the emerging geothermal energy market in the US.

Other financial highlights include 52 per cent of pre-tax profits being generated outside of Iceland and total assets amounting to ISK 2,949 billion (EUR 30 billion, USD 45 billion), up from ISK 2,246 (EUR 23 billion, USD 35 billion).
The Glitnir CEO was pleased to report stable growth in net interest income, fees and commission, saying that the figures have remained “consistent throughout the year.”

Larus Welding concluded that he was confident that the bank‘s current business strategy is building “a solid platform for sustainable growth in all lines of [Glitnir‘s] business.”

For full details of the 2007 results and further information on the Nordic bank and its niches, visit Glitnir‘s website at www.glitnirbank.com

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