Statement of Assets and Liabilities as at 31 December 2010
Glitnir is pleased to announce the release of its Statement of Assets and Liabilities as at 31 December 2010 .
Creditors are advised to read the Statement for full details of Glitnir’s updated asset and liability position. However, a summary of the key financial highlights are below:
31 December 2009 to 31 December 2010
Glitnir’s assets increased by ISK6bn from ISK808bn as at 31 December 2009 to ISK814bn as at 31 December 2010 or by 1%. In EUR the valuation of the assets increased by 18% or from EUR 4,493 million to EUR 5,295 million for the same period. The strengthening of the ISK and other currency movement explain the difference between the valuation in EUR and ISK. During the year 2010 there was an increase in valuation of the assets by ISK 88bn but this increase was offset by ISK 82bn due to other factors mainly the currency movements mentioned above.
30 June 2010 to 31 December 2010
Glitnir’s assets increased by ISK2bn from 30 June 2010 to 31 December 2010. The key drivers for this were:
- an upward revaluation in the loans to customers portfolio. The Resolution Committee estimates the impact of this upward revaluation to be ISK11bn;
- an upward revaluation in investment in subsidiaries of ISK23bn, driven by an increase in the valuations of Islandsbanki and the assets underlying the investment in Glitnir Luxembourg; offset by
- the negative impact arising from movements in FX rates, principally the strengthening of the ISK against various currencies (USD, GBP and EUR). The Resolution Committee estimates the total net impact of movements in FX rates to be ISK28bn.
Total assets in EUR have increased from EUR5,179m to EUR5,295m over the period, a more significant increase than in ISK. The key driver for this increase (in addition to those listed above) related to the weakening of the Euro against various currencies during the period. Approximately 23% of assets are held in Euro as at 31 December 2010.
Glitnir’s cash balance has increased by ISK14bn from ISK245bn as at 30 June 2010 to ISK259bn as at 31 December 2010. This was driven by principal and interest repayments received from the loans portfolio to customers.
As a result of the Winding-Up Board’s continuing work on registered claims, certain adjustments have been made to the initial registered claims in arriving at the estimated computation of liabilities shown in the Statement. As a result of these adjustments, total liabilities have reduced by ISK46bn since 30 June 2010 to ISK2,791bn as at 31 December 2010.
Total operating cost for the twelve months ended 31 December 2010 were ISK4,570m. or 0,24% of the total carrying value of assets as at 31 December 2010
Glitnir intends to publish updated financial information on a three monthly basis. As such, the next financial information expected to be published will be as at 31 March 2011.