Record Profits for KB Bank

KB bank just published its earnings for the first half of this year which were beyond expectations. The results show the following:

Shareholders' net earnings of ISK 31.8 billion (EUR 327 million) for first half of 2006 compared to ISK 24.8 billion (EUR 254 million) for first half of 2005. Shareholders' net earnings of ISK

13.0 billion (EUR 134 million) for second quarter compared to ISK 13.7 billion (EUR 140 million) for the same period in 2005.

Annualised return on equity of 36.2% for first half of 2006.

Earnings per share of ISK 47.9 for first half (ISK 37.9 for the same period in 2005). Earnings per share of ISK 19.6 for second quarter (ISK 20.9 for the same period in 2005).

Net interest income of ISK 24.9 billion (EUR 255 million) for first half of 2006 - increasing by 81.6% compared to the same period in 2005.

Net financial income of ISK 10.9 billion (EUR 112 million) for the first half of 2006 - decreasing by 41.2% compared to the same period in 2005.

Operating income of ISK 66.5 billion (EUR 683 million) for first half of 2006 - increasing by 43.3% compared to the same period in 2005.

Total assets of ISK 3,552 billion (EUR 36.5 billion) at the end of June, increasing by 11% at a fixed exchange rate since the beginning of the year and by 39.8% in ISK.

Annualised return on equity of FIH, Kaupthing Bank's subsidiary in Denmark, was 20.9%.

Kaupthing Bank sold its 24% shareholding in VÍS to Exista in May.

According to Hreidar Már Sigurdsson, CEO of KB Bank "These results show that the Bank is performing well in a volatile market environment. It's pleasing to see underlying growth in net interest income and commission income. The Bank's remained highly efficient with net interest income and operating lease income covering operating expenses. The cost-to-income ratio for the first six months of 2006 is 41% and return on equity is 36% on an annual basis. The outlook is bright for the third quarter of 2006 and there is every reason to expect that the Bank will meet its targets on profitability."