MP banki delivers a profit of ISK 590 Million in the first 9 months of 2013

Net interest and fee income increase by ISK 200 million between years

5.11.2013

MP banki delivered a profit of ISK 590 million after tax in the first 9 months of 2013, compared to ISK 372 million for the same period in 2012.

Net financial income and share in associates were lower compared to the same period last year. Net interest income was slightly lower but net fee income increased by 23%. Net interest and fee income now amount to 87% of net operating income for the first 9 months of 2013.

Administrative expenses increased by 16% between years relating to increased operations and higher tax on financial activity. Average number of employees was 107 at the end of September compared to 96 same time last year.

A significant positive reversal of specific loan impairments was realized in the first half of 2013. This development continued in Q3 and net profit based on reversals was ISK 221 million for the first 9 months of 2013.

Total assets amount to ISK 63 billion a slight decrease since year end 2012. The loan portfolio is ISK 27.2 billion similar as in the beginning of the year. Deposits, including money market borrowings, amounted to ISK 45.1 billion.

The bank remains highly liquid with ISK 20.4 billion in cash and cash equivalents by the end of September, well above the minimum requirements set by FSA and CBI.

Share capital was increased by ISK 300 million in the second quarter and total equity amounted to ISK 6.1 billion at the end of third quarter.

The bank's total capital ratio has grown since year end 2012 and was 14.2% at the end of September. The regulatory minimum is 8%. All of the bank's capital is tier 1 core equity.

Total number of shareholders is 49 and no one shareholder holds over 10% of total equity.

Good results pave way for further growth

“Our core business units are delivering solid results. The Asset Management team has delivered good returns for their customers. Our Capital Markets team has gained substantial market share in equities and FX Sales has grown faster than anticipated. Since we introduced our strategy “the bank for businesses” our main focus has been on providing Icelandic businesses with specialized banking services which is based on our employees' knowledge and skills. The bank has grown substantially during this period and the financial results have been positive. Our net fee income has been on the rise and we've maintained our strong presence at the bond market,” says MP banki's CEO Sigurður Atli Jónsson

Summary financials – In ISK million

Income statement

  9M 2013 9M 2012 Change % change
Net interest income 1,275 1,303 -29 -2%
Net fee income 1,209 983 +227 +23%
Net financial income 258 478 -220 -46%
Share in associates 31 217 -187 -86%
Other income 86 7 +79
Net operating income 2,859 2,988 -129 -4%

 
 
Administrative expenses -2,590 -2,239 -351 -16%
Impairment losses 222 -280 +502
Gain from assets held for sale 10 0 +10
Pre-tax income 501 470 +31 +7%

 
 
Income tax 107 -32 +139
Special banking tax -18 -65 +48 +73%
Net income 590 372 +218 +58%

Balance sheet

  30.9.2013 31.12.2012 Change % change
Cash and cash equivalents 16,617 20,290 -3,673 -18%
Receivables from CBI 3,802 3,288 +514 +16%
Securites 11,761 13,272 -1,511 -11%
Loans to customers 27,206 27,789 -583 -2%
Other assets 3,850 4,754 -905 -19%
Total assets 63,236 69,393 -6,157 -9%

 
 
Deposits and borrowings 45,128 48,978 -3,850 -8%
Short positions 8,024 7,986 +37 0%
Other liabilities 3,946 7,179 -3,233 -45%
Total liabilities 57,098 64,143 -7,046 -11%

 
 
Share capital 5,850 5,550 +300 +5%
Other equity 289 -300 +589
Total equity 6,139 5,250 +889 +17%





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