MP banki Delivers a Profit of ISK 465 Million After Tax in Q1 2013

Best Quarter in the History of the Bank

24.4.2013

MP banki delivered a profit of ISK 465 million after tax in the first quarter 2013 compared to ISK 22 million  in the corresponding quarter of 2012. The profit before income tax and special banking tax is ISK 433 million.

The first quarter of 2013 is the best performing quarter in the history of the bank. Overall results are excellent with the net operating income amounting to ISK 1,105 million in the first quarter of 2013 and growing by 35% year on year. The net interest income was ISK 473 million in Q1 compared to ISK 377 million in Q1 2012, an increase of 26%.

The net interest income was ISK 473 million and the net fee and commission income was ISK 420 million. The net financial income was ISK 143 million compared to ISK 82 million in Q1 2012. Shares in associates returned ISK 14 million.  

Around half of the Q1 profits are due to a significant positive reversal of specific loan impairments which were positive by ISK 221 million in Q1 2013.

Total assets amount to ISK 63 billion at the end of Q1. The loan portfolio amounted to ISK 29.6 billion at the end of Q1 which is an increase of ISK 1.18 billion since the end of the year 2012. Deposits including money market borrowings amounted to ISK 47.9 billion by the end of Q1 2013.

The bank´s total capital ratio is 12%. The regulatory minimum is 8%. All of the bank's capital is tier 1 core equity.

Strong Results for Regular Business

“We are proud to announce these positive quarterly results. We have been successful in recovering impairment charges on specific legacy assets which accounts for about half of the profits for Q1. Our day to day business is however also performing very well. We are currently focused on actively selecting our customers and our projects and maintaining the quality of the loan portfolio. We have also managed to maintain our leading position in capital markets,  - says MP banki´s CEO Sigurður Atli Jónsson.

Summary Financials – in ISK Million

Income statement 1.1.2013 – 31.3.2013

Net interest income 472.6
Net fee income 419.6
Net financial income 143.2
Share in associates 13.6
Other income 56.3
Net operating income 1,105.3


Administrative expenses -893.8
Impairment 221.4


Pre-tax income 432.9


Income tax 50.1
Special tax on financial institutions -18.2

 
Profit 465.5

Balance sheet 31.12.2012

Cash and cash equivalents 15.111
Securities 13.140
Loans to customers 29.559
Investment in associates 572
Other assets 4.803
Total assets 63.185
   
Deposits and borrowings 47.887
Short positions 3.215
Other liabilities 6.174
Total liabilities 57.276
   
Share capital 5.550
Other equity 359
Total equity 5.909

Year on Year Comparison: Q1 ´12 vs – Q1 ´13 in ISK million


Q1 '13 Q1 '12 Change % change
Net interest income 472,6 377,3 95,3 25%
Net fee income 419,6 331,4 88,3 27%
Net financial income 143,2 82,1 61,1 74%
Share in associates 13,6 53,2 -39,6 -74%
Other income 56,3 -25,4 81,8 321%
Net operating income 1.105,3 818,5 286,8 35%





Administrative expenses -893,8 -732,9 -160,9 22%
Impairment losses 221,4 -36,5 257,9 -706%
Pre-tax income 432,9 49,1 383,7 781%





Total assets 63.184,8 62.542,8 642,0 1%
Loans to customers 29.559,0 16.499,0 13.059,9 79%
Deposits and borrowings 47.886,7 42.852,8 5.033,8 12%





NIM 2,9% 2,7%

MP Banki's Interim Account 31.03.13