The Icelandic savings bank SPRON, which closed its doors last year, held an assets sale yesterday where the bank’s administrators sold off some of the firm’s physical assets to the public. Read the full story

New Kaupthing Bank threatened the SPRON resolution committee with legal action over the sale of SPRON assets, according to Morgunbladid sources.
New Kaupthing managers are unhappy with what they see as the pawning off of SPRON assets. MP Bank yesterday bought a large chunk of the SPRON branch network and the nb.is internet banking service for ISK 800 million (USD 6.5 million). Read the full story

The SPRON resolution committee has reached an agreement on the sale of SPRON’s branch network. Hlynur Jonsson, the head of the resolution committee, confirmed this to visir.is a short while ago – although he would not say who the purchaser was, saying that the sale would be publicly presented later today. Read the full story

According to RUV.is sources, the transfer of all customer funds from SPRON to New Kaupthing has now been completed. All assets are fully insured according to law.

SPRON debit and credit cards will continue to work and SPRON customers will have continued access to their online banking services for the next few days until their access to Kaupthing internet banking has been set up. Read the full story

The Icelandic Financial Services Authority (FME) today announced it has taken over the savings banks SPRON and Sparisjodabankinn after they requested state help earlier in the week. Read the full story

Kaupthing Bank hf. and SPRON, two of Iceland’s biggest banks, have decided to enter negotiations on a possible merger between the companies. Negotiations are expected to be completed in approximately four weeks.

Any merger of the companies is subject to the approval of a SPRON shareholders’ meeting, the Board of Directors of Kaupthing, the Icelandic Financial Supervisory Authority, the Icelandic Competition Authority and the companies’ creditors.

For further information visit www.kaupthing.com or www.spron.is/english

Reuters reports thtat Consumer confidence in Iceland is up 1.4 % in December from last month, but is down over 15 % from 2006. Figures from market research firm Gallup showed this when made puplic last Friday.

The index rose 1.6 points from 116 to to 117.6 the month before. Iceland central bank  (Sedlabanki) held interest rates unchanged this week at a record 13.75 %. The banks spokesman said the impact of its latest of its 19 monetary policy hikes in less than four years and a worsening global outlook, would cool the fast moving Icelandic economy.

The bank raised rates by 45 basis points on November the 1st 2007. Data showed inflation hit 5.9 percent year-on-year in early December 2007.

Net after-tax profit ISK 9.3 billion. Return on equity (ROE) 41.6%.

Gudmundur Hauksson CEO: “The operating results for the first nine months of the year are good and SPRON’s operating income has never been higher, exceeding our expectations. SPRON’s core income is strengthening but at the same time our stock investments have suffered due to turbulence in financial markets. The Group’s profits totalled ISK 9.3 billion in the first nine months and ROE was 41.6% which is well above our goal for the year. Prospects for the year are good with the continued strengthening of the Group’s core operations.”

Highlights from the first nine months of 2007:

• SPRON reported an after-tax profit of ISK 9,279 million in the first nine months of the year
• Return on equity after-tax was 41.6% on an annualised basis
• Net interest income amounted to ISK 15,297 million in the period and has never been higher
• Net interest margin was 1.2%
• Total assets amounted to ISK 219,188 million at the end of September 2007 and increased by 18.8% from year end 2006
• Loans to customers amounted to ISK 148,583 million at the end of September and increased by 15.8% from year end 2006
• Customer deposits amounted to ISK 74,625 million and increased by 31.9% from year end 2006

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A lot of the impetus behind the current US drive for geothermal alternatives to fossil fuels comes from across the Atlantic, in Iceland.

Iceland America Energy is one of the many companies currently exploring the geothermal possibilities in the United States. CEO Magnus Johannesson sees huge potential for both geothermal energy production in the US and for its uses.

Johannesson suggests that geothermal energy could be used to power air conditioning systems in Las Vegas and snow removal systems in the Rocky Mountains.

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The Banker magazine named Glitnir as Icelandic ‘Bank of the Year’ at its annual awards ceremony last week in London.

Nordic bank Glitnir won the award during a presentation at the Dorchester hotel in London on Wednesday.

Judges for The Banker magazine said they were impressed by Glitnir’s “targeted acquisitions and outstanding 80% profit increase.” The Banker magazine is world’s oldest international banking magazine and a member of the Financial Times group.

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