Financial Highlights of the Local Loan Fund
Profit for the Year Reaches 2.07 Billion ISK
The Local Loan Fund has reported a profit of 2.07 billion ISK for the year, marking a significant increase from 1.87 billion ISK in the previous year. While the net interest income has slightly decreased by 4% due to lower inflation rates, the fund’s overall performance remains strong.
Growth in Assets and Loans
By the end of the year, total assets of the fund amounted to 211 billion ISK, showing a healthy increase from 200 billion ISK recorded at the end of last year. Furthermore, the total loans issued also rose to 200 billion ISK compared to 191 billion ISK at the same time last year, demonstrating the fund's commitment to support local municipalities.
Investment Portfolio Overview
The market value of securities issuance stood at 13.9 billion ISK, down from 18.8 billion ISK in the previous year. This change reflects various market dynamics that have affected investment valuations.
Equity Performance
Equity has also witnessed growth, reaching 24.8 billion ISK compared to 22.7 billion ISK last year. However, the weighted equity ratio, which adheres to financial regulations, has dropped to 361% with full mitigation, down from 416% last year.
Strategic Recommendations
The board of the fund has proposed that no dividends will be paid out to shareholders for the year 2024. This strategic decision aims to strengthen the fund's position and ensure further growth of its equity base.
Future Outlook
The Local Loan Fund expects that demand for loans will be similar to that observed in the past year. The fund will operate fundamentally in the same manner as in previous years, focusing on enhancing its operations and improving service delivery to municipalities. This will be achieved by leveraging its solid creditworthiness to meet its main objectives.
For further information, please contact: Óttar Guðjónsson, CEO, s. 515 4949.
Frequently Asked Questions
What is the profit amount reported for this year?
The Local Loan Fund reported a profit of 2.07 billion ISK for the year.
How much have total assets increased?
Total assets have increased to 211 billion ISK from 200 billion ISK last year.
What is the status of the fund's loan amount?
The total loans issued stood at 200 billion ISK, up from 191 billion ISK from the previous year.
What recommendations has the board made regarding dividends?
The board has recommended that no dividends be paid to shareholders for the year 2024 to enhance the fund's equity position.
What are the expectations for future loan demand?
The Local Loan Fund anticipates that loan demand will remain similar to the previous year.
