At a board
meeting on 29 August 2016, the Board and the CEO approved the condensed consolidated
interim financial statements of Kvika banki hf. for the period 1 January 2016
to 30 June 2016.
Sigurður Atli
Jónsson, CEO of Kvika:
“It
is gratifying to present the financial statement of Kvika for the first half of
2016. Kvika has reached the operational targets set when Straumur Investment
Bank and MP banki merged. Behind us is a successful merger that was based on
respect and collaboration of those involved. The performance of Kvika is good
and in line with expectations, after only one year of operation. The
bank has great financial strength. We build on that foundation and leverage the
knowledge and skills of Kvika's staff to move forward.
It is very positive that Iceland will again be part of
international financial markets. Kvika is ready for those changes, as the bank
has provided extensive foreign investment services to its customers in recent
years.
When long-term planning and a job well done
meet, optimism for the future follows.”
Good performance in line with expectations
The profit
of Kvika during the first six months of 2016 amounted to ISK 378 million.
Return on equity was 12.3%. Net operating income was ISK 2,164 million during
the period, compared to ISK 2,535 million in the second half of 2015. Fee
incomes decreases somewhat compared to 2H 2015, mainly due to seasonality and
fluctuations in performance related fee income.
Operating
expenses amounted to ISK 1,668 million during the first half of 2016. Operating
expenses decreased in line with expectations by 13% from the second half of
2015, taking merger costs in the previous period into account.
At the end
of June 2016, Kvika's consolidated assets totalled ISK 77,825 million compared
to ISK 61,614 million at the end of 2015, which equals an increase of 26% during
the period. Loans to customers amounted to ISK 23 billion. General deposits and
money market deposits increased significantly, by over ISK 14 billion, or 30%,
during the period. At the same time, the bank has improved funding cost.
The total
capital ratio at the end of June was 18.0% versus 23.5% at the end of 2015. The
reduction is in line with expectations and is mainly due to the decrease of
share capital, approved at the shareholders' meeting earlier this year. The
bank's liquidity is strong, LCR is 211%, and the bank is well positioned to
deal with possible capital outflow as a result of the abolition of capital
controls.
Interim Financial Statement 1H 2016