Published: January 29, 2008

Glitnir Bank Full-Year Results for 2007

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            ISK 27.7 billion (EUR 315 m) profit after tax
                       19.3% Return on equity


Financial Highlights
* Net income increased by 17.2% year-on-year
* Pre-tax profit in Q4 was ISK 3.8 billion to ISK 10.4 billion in Q3
* Net interest income in Q4 was ISK 11.9 billion, up by 54.6% from Q4
  06
* Fees and commissions increased by 7.8% in Q4 and amounted to ISK
  10.6 billion
* 52% of pre-tax profit was generated outside Iceland in 2007
* Earnings per share for 2007 amounted to ISK 1.86, as compared to
  ISK 2.68 in 2006
* Total assets amounted to ISK 2,949 billion, up from ISK 2,246 at
  the beginning of 2007
* Assets under management decreased by 6.7% QonQ, by the sale of
  Glitnir Property Holding, but increased by 91% over the year
  amounting to ISK 936 billion at year-end
* Capitalization with CAD ratio at 11.2%, and Tier 1 ratio at 8.1%

Operational Highlights
* Core income is solid, increasing by 36% year on year
* Glitnir number two equity broker by turnover in the Nordic Region
* Profits in Q4 are affected by unfavourable market conditions
* Costs above acceptable levels which can partly be explained by
  one-off costs
* Strong liquidity position in challenging markets
* Growth strategy focused on niches proven successful

Lárus Welding, Chief Executive Officer says: "Looking at the results I am pleased to see stable growth in net interest income and fees and commission. Net fees and commission have been consistent throughout the year, totalling ISK 37.6 billion, which is a 42% increase year on year. I am very pleased to see that income from core operations is growing again at a brisk pace of 21%. Glitnir is furthermore reporting a healthy growth in revenues by 17.2% and we have a stable loan portfolio to secure strong net interest income into the year."

"Glitnir's three niches, seafood, geothermal and offshore supply vessel are growing as proportion of our loan book, from 11% in 2006 to 13% in 2007. Our focus on our niches is an important investment in Glitnir's future growth. Additionally Glitnir has become one of the leading players in the Nordic Equity and Brokerage market."

"2007 has been a year where Glitnir has invested in growth which is clearly reflected in the increase in costs relating to integration of our business units, opening of new operations as well as in one-off costs relating to management change. However we are now moving to a more focused organizational structure, which makes Glitnir well equipped to increase efficiency and control costs through strong regional leadership, with clearer profit and loss responsibility and simple lines of reporting."

"Last months have been challenging for all financials institutions, but Glitnir is in good position to deal with the situation, with a comfortable liquidity position of more than EUR 6 billion of immediately available funds and a good underlying revenue base. Our loan portfolio is well diversified and of high quality."

"I am confident our focused strategy creates a solid platform for sustainable growth in all our lines of business", says Lárus Welding.

For further information please contact:

Lárus Welding                Alexander K. Guðmundsson
CEO                          CFO
Tel: +354 440 4005           Tel: +354 440 4656

Bjørn Richard Johansen       Vala Pálsdóttir
MD Corporate Communication   Head of Investor Relations
Tel: +47 47 800 100          Tel: +354 440 4989
brj@glitnir.no               vp@glitnir.is

Glitnir Bank Full year 2007 Presentation -- http://hugin.info/133924/R/1185973/237528.pdf

Glitnir Bank Annual accounts 2007 -- http://hugin.info/133924/R/1185973/237529.pdf

Glitnir Bank full year results 2007 Press release -- http://hugin.info/133924/R/1185973/237527.pdf