Straumur-Burdaras Investment Bank hf. 2007 annual results

Straumur-Burdaras Investment Bank hf. 2007 annual results
              Consolidated profit after tax EUR 162.9m

Chief annual results for 2007
*          Profit after tax totalled EUR 162.9m in 2007, as opposed
  to EUR 515.4m in 2006.
*          Operating income totalled EUR 330.0m in 2007, down 37.5%
  from 2006.
*          Net interest income amounted to EUR 68.8m in 2007,
  representing 20.9% of operating income and up 61.8% from the
  previous year.
*          Net fee and commission income was EUR 131.3m in 2007,
  representing 39.8% of operating income and an increase of 55.5%
  from the previous year.
*          Net financial income decreased from EUR 392.3m in 2006 to
  EUR 111.4m in 2007.
*          Operating expenses totalled EUR 118.9m for 2007 compared
  with EUR 44.1 for 2006.
*          The cost income ratio for the year was 36.0%.
*          Earnings per share in 2007 were EUR 0,017 compared with
  EUR 0,051 in 2006.
*          Return on equity in 2007 was 11.3% as opposed to 42.0% in
  2006.
*          Total assets amounted to EUR 7,136.9m at 31 December 2007,
  compared with EUR 4,357.8m at 31 December 2006.
*          Assets under management totalled EUR 1,7bn at 31 December
  2007.
*          The CAD ratio was 23.7% at the year-end 2007. The Tier 1
  capital was 21.4%.
*           Straumur has no direct or indirect exposure to sub-prime
  loans, collateral debt obligations, asset backed securities,
  structured investment vehicles, conduits and monoline insurance.

Chief results for the fourth quarter of 2007
*          There was a loss after tax of EUR 0.6m in the fourth
  quarter, compared with a profit of EUR 276.7m for the same period
  in 2006.
*          Operating income amounted to EUR 56.5m in the fourth
  quarter, down 72.7% on the fourth quarter 2006.
*          Net interest income amounted to EUR 23.0m in the fourth
  quarter, compared with EUR 6.8m in the fourth quarter 2006.
*          Net fee and commission income rose by 44.1% year-on-year
  and amounted to EUR 36.8m in the fourth quarter of 2007.
*          Net financial income was a net loss of EUR 4.4m in the
  fourth quarter, compared with EUR 165.3m for same period in the
  previous year.

William Fall, CEO of Straumur"The year 2007 has been a transformational year for Straumur. We have
extended the  international reach  of the  Group and  developed  from
being an Icelandic company  with operations almost exclusively  based
in Iceland to an  Icelandic company that has  taken its place in  the
international market with  a broader  and deeper  product and  client
bases.
Despite exceptionally difficult market conditions for the second half
of the year we reported a satisfactory profit for 2007 and ended  the
year with a  strong capital  and liquidity position.  The journey  to
create the leading  investment bank  in Northern  and Central  Europe
continues with increasing contribution from client-driven  activities
in an increasingly diverse footprint"

Further information can be obtained from:
Stephen Jack
CFO
stephen.jack@straumur.net
+44 7885 997570

Georg Andersen
Director of Investor Relations
georg@straumur.net
+354 858 6707