Glitnir Bank announce full year results for 2006

Reykjavik, Iceland - 30 January 2007

ISK 38.2 Billion (EUR 435 m) Profit after Tax
39.4% Return on Equity
ISK 9.3 billion (EUR 106 m) profit after tax in Q4

The highlights of Glitnir Bank's financial statements for the full year of 2006 are as follows:
* After-tax profit for the fourth quarter was ISK 9.3 billion, as compared to ISK 8.8 billion in Q3 2006. After-tax profit was ISK 38.2 billion in 2006, as compared to ISK 18.9 billion in 2005, a 102% increase.
* Pre-tax profit for the fourth quarter was ISK 11.6 billion, as compared to ISK 10.4 billion in Q3 06. Pre-tax profit for 2006 was ISK 46.3 billion, as compared to ISK 23.1 billion in 2005.
* During 2006, 45% of the Bank's pre-tax profit was generated outside Iceland, or ISK 20.7 billion of ISK 46.3 billion.
* Net interest income for Q4 was ISK 8.4 billion, up by 37% from ISK 6.1 billion in Q4 2005. Net interest income was ISK 9.3 billion in Q3 06. Net interest income was ISK 37.1 billion in 2006, as compared to ISK 22.4 billion in 2005.
* Fees and commissions for Q4 2006 was ISK 10.3 billion, increasing from ISK 2.9 billion in Q4 2005. Fees and commissions was ISK 5.0 billion in Q3 2006. Fees and commissions increased by 202%, from ISK 8.8 billion in 2005 to ISK 26.5 billion in 2006.
* Earnings per share for Q4 2006 amount to ISK 0.64. EPS for 2006 was ISK 2.68.
* After-tax ROE in 2006 was 39.4%, as compared to 30% in 2005. After-tax ROE for the year, excluding trading gains in equities and capital gains, was 34%.
* Total assets grew by ISK 774 billion, or 53%, to ISK 2,246 billion over the year. Of this figure, loans to borrowers other than credit institutions were ISK 1,583 billion, up by ISK 484 billion, or 44%. This growth in part reflects the devaluation of the ISK. Excluding the impact of the devaluation, the growth was 20% in 2006 and 7% in Q4 06.
* International bond issues amounted to EUR 4.9 billion for the full year compared to EUR 6 billion in 2005.
* Wholesale deposits in the UK started in October, amounted to ISK 45 billion at year-end. Maturities up to 3 years.
* Assets under management grew by 42% over 2006, bringing AUM to ISK 490 billion.
* Additional tax of ISK 589 millions was charged in Q4, resulting from divirgent views of Glitnir and the Icelandic tax authorities on the legal scope of tax mergers. The ruling will be appealed.
* Book equity was ISK 146.1 billion at the end of December, up by 73% from the end of 2005. The CAD ratio was 15.0% with Tier 1 ratio at 10.8%.

Bjarni Ármannsson, CEO: "The year 2006 was the best ever in the Bank's history with net profit doubling from 2005, which was a record year. All business units returned excellent profit, showing the strength of the Bank's foundations. During the year we continued to grow our business through a balance of organic growth and targeted acquisitions. Our results were highlighted by extraordinary growth in net fees and commissions' income with such income more than tripling between years. In fourth quarter, for the first time, income from fees and commissions exceeded net interest income, demonstrating clearly the revenue mix transformation taking place in 2006. Once again, the Bank's employees have shown outstanding performance, and the Bank's shareholders have been very supportive throughout the year. These results lay the foundations for continued growth with our strategy of combined success via targeted organic growth and acquisitions."

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