Announcement of 6M Financial Data for Landsbanki Íslands hf. – Q2 2011
Updated information on the estimated value of the asset portfolio of Landsbanki Íslands hf. (LBI) as of 30 June 2011 were presented to the bank's creditors today. Following major achievements in recovering assets in Q2 this year, the estimated increase in the value of the bank's asset portfolio over the previous quarter amounts to over ISK 45 billion. Measured in foreign currencies, the real increase over the past quarter is over ISK 32 billion, with the greatest share of this difference due to exchange rate movements.
Calculated at a fixed ISK exchange rates as of 22 April 2009, the recoveries are estimated at ISK 1,332 billion, or three percentage points more than the total book value of priority claims, which amounted to ISK 1,319 billion as of 30 June this year. In other words, based on the situation at the end of June this year, and the above-mentioned premises, recoveries should be some ISK 13 billion higher than the book value of priority claims against the bank (primarily Icesave deposits and wholesale deposits). The real increase in estimated amounts recovered in Q2 is in particular due to the increase in valuation of the bank's assets, including claims against financial undertakings, corporate loans in its loan portfolio and the increase in the estimated value of the contingent bond to be issued by the new bank, Landsbankinn hf. (previously NBI hf.) to LBI. If estimated recoveries are based on the ISK exchange rates at the end of period, i.e. 30 June this year, they amount to ISK 1,290 billion, or around 98% of total priority claims.
The positive trend continues that cash is being acquired for the bank's claims more rapidly than estimated. As of mid-year, cash and cash equivalents amounted to ISK 453 billion. The principal explanation for this is that loans have been collected more rapidly than previously anticipated. Cash now comprises over one-third of the book value of priority claims, estimated recoveries on the agreement with Landsbankinn hf. amount to one-third of the value of total assets, and loans and other assets total around one-third.
The estimated value of the bank's 67% holding in the retail chain Iceland Foods was not adjusted during this period, but the bank's stake, together with the 10% holding of Glitnir hf., or a total of 77%, is in a joint sales process.