MP banki delivers a profit of 460 Million in 1H 2013

288% increase from last year

23.8.2013

MP banki delivered a profit of ISK 460 million after tax on the first half of 2013, compared to ISK 119 million in 1H 2012. Profit before income tax and special banking tax is ISK 391 million.

Net financial income and share in associates were lower compared to 1H 2012.  A small increase was in net interest income and net fee income increased by 38%. Net interest and fee income is becoming a bigger part of total income and amounted to 87% of net operating income.

Administrative expenses increased by 16% between years relating to increased operations and higher taxes.

A significant positive reversal of specific loan impairments was realized in the period and profit based on reversals was ISK 185.

Net financial and interest income were lower in Q2 2013 compared to Q1 2013. Net fee income increased by 6% in the second quarter compared to the first and by 52% compared to the same period last year. Regular fee income have never been higher than in Q2 2013.

Total assets amounted to ISK 68 billion at the end of June. The loan portfolio grew by ISK 1.4 billion from year-end 2012 and amounted to ISK 29.2 billion at the end of June. Deposits including money market borrowings amounted to ISK 49.5 billion, cash and cash equivalents and receivables from CBI amounted to 21.7 billion ISK.

Share capital was increased by 300 million ISK on the second quarter and total equity amounted to just under 6 billion ISK at the end of second quarter.

The bank's total capital ratio was 12.9% at the end of June. The regulatory minimum is 8%. All of the bank's capital is tier 1 core equity.

Shareholders of the bank are in total 50 and no one shareholder holds over 10% of total equity.

Exciting times are ahead of us

After a great result on Q1 the bank has been taking steps to further strengthen its internal operations and prepare for the next step in our growth process. Internal growth for the bank has been high for the last two years. In second quarter the bank decided to take an interesting step towards expansion with external growth by acquiring another financial company. The bank's offer for the majority of the shares of Íslensk verðbréf hf. has been accepted and is estimated to be finalized in Q3. The acquisition will enhance the bank's operation even further and strengthen regular income. It is clear that exciting times are ahead of us,” says MP banki's CEO Sigurður Atli Jónsson.

Summary financials - in ISK million

Income statement 1.1.2013 – 30.06.2013


6M 2013 6M 2012 Change % Chg.
Net interest income 879 851 28 3%
Net fee income 863 623 239 38%
Net financial income 172 324 -151 -47%
Share in associates 14 217 -204 -94%
Other income 73 -7 81
Net operating income 2.001 2.008 -7 0%





Administrative expenses -1.805 -1.554 -251 16%
Impairment losses 185 -254 438
Gain from assets held for sale 10 0 10
Pre-tax income 391 200 191 95%





Income tax 82 -39 121
Special banking tax -13 -43 30 -70%
Net income 460 119 342 288%

Balance sheet 1.1.2013 – 30.06.2013


30.6.2013 31.12.2012 Change % Chg.
Cash and cash equivalents 19.795 20.290 -494 -2%
Receivables from CBI 1.916 3.288 -1.371 -42%
Securities 13.288 13.272 16 0%
Loans to customers 29.178 27.789 1.388 5%
Other assets 3.667 4.754 -1.088 8%
Total assets 67.844 69.393 -1.549 -2%





Deposits and borrowings 49.523 48.978 545 1%
Short positions 7.446 7.986 -540 -7%
Other liabilities 4.912 7.179 -2.268 -32%
Total liabilities 61.881 64.143 -2.262 -4%





Share capital 5.850 5.550 300 5%
Other equity 113 -300 413
Total equity 5.963 5.250 713 14%





CAD ratio 12,90% 10,80%

MP Banki's interim account 30.06.2013