MP Bank Returns a ISK 470 Million Profit YTD 2012

Fourth Consecutive Profitable Quarter

26.11.2012

MP Bank returned a pre-tax profit of ISK 470 million in the first 9 months of 2012 compared to ISK 847 million pre-tax loss for the same period in 2011. Profit after income tax and special banking tax is ISK 372 million.

Pre-tax profit in third quarter alone was ISK 270 million and 254 million after income and special banking tax. This is therefore the most profitable quarter so far this year.

Total assets increased by 46% during the first 9 months to ISK 73.2 billion. Loans to customers have grown by 78% and amount to 23.6 billion at the end of September. The bank has expanded its deposit base by 46% during the first 9 months of 2012 to a total amount of ISK 53.5 billion, inclusive of money market borrowings.

The bank is highly liquid with ISK 29.6 billion in cash and cash equivalents by the end of September, up by 156% from beginning of the year.

Net operating income in the first 9 months of 2012 was nearly ISK 3,000 million. Net interest income was ISK 1,303 million. Net fee and commission income was 983 million and net financial income ISK 478 million. Shares in associates returned ISK 217 million.  

Business Lending Grown by 210% in One Year

“MP Bank is growing far more than even our ambitious plans had anticipated and we have now achieved positive returns for four consecutive quarters. We intend to become a clear and preferred banking partner for Icelandic businesses. We are already moving rapidly towards that goal with 210% increased lending to businesses amounting to ISK 16 billion since mid 2011,” - says MP Bank´s CEO Sigurður Atli Jónsson.

Increased Lending Capacity with Share Capital Increase

“We expect to see our loan book grow significantly in the coming months as Icelandic businesses will be able to switch more freely from other financial institutions and currency loans will be recalculated for the last time. Our lending capacity is currently at ISK 25 - 30 billion but with the proposed share capital increase of ISK 2 billion we can nearly double our lending to about ISK 50 billion. The share capital increase allows the bank to grow with our clients and the corporates in general. The larger equity base also means that we will be able to offer financing to almost all firms in Iceland,” – says Sigurður Atli Jónsson, CEO of MP Bank.

Key Financial Information

  • Loans to customers have increased from ISK 7.6 billion in Q2 2011 to ISK 23.6 billion by Q3 2012.
  • Deposits and money market borrowings have expanded by 46% to ISK 53.5 billion.
  • Net operating income in Q3 2012 was ISK 980 million compared with ISK 378 million in Q3 2011.
  • Pre-tax profit in Q3 2012 is ISK 270 million compared to a loss of 166 million in Q3 2011.
  • The bank´s tier 1 capital ratio was 14.3% remaining well above the 8% required minimum.

Summary Financials – in ISK Million

Income statement 1.1.2012 – 30.9.2012

Net interest income
1,303.4
Net fee income
982.7
Net financial income
477.8
Share in associates
217.5
Other income
7.0
Net operating income
2,988.5




Administrative expenses -2,238.6
Impairment
-280.1




Pre-tax income
469.7




Income tax
-32.0
Special tax on financial institutions -65.3




Profit

372.4

Balance sheet 30.9.2012

Cash and cash equivalents 29,584
Loan to Central Bank 8,310
Securities 8,415
Loans to customers 23,611
Investment in associates 558
Other assets 2,694
Total assets 73,172


Deposits and borrowings 53,535
Short positions 8,884
Other liabilities 5,354
Total liabilities 67,773


Share capital 5,550
Other equity -151
Total equity 5,399

Year on Year Comparison: Q3 ´11 vs. Q3 ´12 – in ISK million

  Q3 '12 Q3 '11 Change % change
Net interest income 452.4 180.9 271.4 150%
Net fee income 359.6 141.0 218.6 155%
Net financial income 154.2 46.0 108.2 235%
Share in associates 0.0 3.7 -3.7 -100%
Other income 14.3 6.8 7.5 111%
Net Operating Income 980.5 378.4 602.1 159%
         
Administrative expenses -684.4 -523.5 -160.9 31%
Impairment -26.4 -21.0 -5.4 26%
Pre-tax income 269.7 -166.1 435.8 262%
         
Total assets 73,172.0 50,727.3 22,444.8 44%
Loan book 23,611.1 10,091.5 13,519.6 134%
Total deposits 53,534.6 36,775.6 16,759.0 46%
         
NIM 2,5% 1,4%    

MP bank's Interim Account 30.09.12