MCI Interim Financial Statment, June 30Th, 2018
Total Page:16
File Type:pdf, Size:1020Kb
okt.22 Municipality Credit Iceland Translation of condensed Interim Financial Statements for the period 1 January through 30 June 2018 This condensed interim financial statements are translated from the original which is in Icelandic. Should there be discrepancies between the two versions, the Icelandic version will take priority over the translated version. Index Page Report of the Board of Directors and the Managing Director .................................................................................... 2 Report on Review of Condensed Interim Financial Information ................................................................................ 3 Condensed Income Statement and Condensed Statement of Comprehensive Income ........................................... 4 Statement of Condensed Financial Position ............................................................................................................ 5 Statement of Condensed Changes in Equity ............................................................................................................ 6 Statement of Condensed Cash Flows ....................................................................................................................... 7 Notes to the Condensed Financial Statements ......................................................................................................... 8-26 Municipality Credit Iceland Plc. Identity number 580407-1100 Borgartun 30, P.O. Box 8100 128 Reykjavik Report of the Board of Directors and the Managing Director Municipality Credit Iceland Plc. (MCI) is a statutory limited liability company owned by the Icelandic municipalities. MCI is a financial institution, and operates pursuant to Act no. 1450/2006 on the incorporation of Municipality Credit Iceland as a statutory limited liability company; Act No. 161/2002 on Financial undertakings; cf. The Companies Act No. 2/1995 and is supervised by the Icelandic Financial Supervisor. MCI´s main function is to secure favorable funding to the municipalities and related organisations and enterprises. MCI is by law only allowed to fund municipal projects that are of general economic interest. MCI had three employees at period end, the same as in the year before. Operating results and financial position The profit for the period amounted to ISK 310 million, as compared to ISK 432 million the same period previous year. Total assets at the end of the period amounted to ISK 96.906 million, as compared to ISK 85.707 million the previous year. Total outstanding loans amounted to ISK 91.190 (at the end of the period as) compared to 73.566 the previous year. Shareholder equity amounted to ISK 17.364 million as compared to ISK 17.458 million at year end 2017 which is a decrease of 0,5% during the period. Dividend of ISK 388 million was paid out to shareholders in the period. The CAD ratio, based on Basel II, was 81% at period end and increased from 97% at year end 2017. MCI is owned by the 73 municipalities in Iceland, after a merger of Sandgerdi and Gardur. Reykjavik city holds 17.5% share and is the only shareholder with a total share above 10%. The ten largest shareholders hold in total 56% of the company´s shares. A detailed shareholder list can be found in note 26. MCI´s Governance MCI´s board of directors aim to maintain good corporate governance and to follow "Management governance directions for public companies" published in 2015 by Iceland Chamber of Commerce, Nasdaq Iceland and SA-Confederation of Icelandic employers. In March 2013 The Center of Corporate Governance provided MCI with a certification as Exemplary company in corporate governance. This certification was last updated in March 2016. Further information can be found in the Annual Report. Statement The condensed interim financial statements for the period ending 30 June 2018 have been, to the best knowledge of the board of directors, prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Icelandic disclosure requirements in Act No. 3/2006. According to our best knowledge it is our opinion that the condensed interim financial statements give a true and fair view of the financial performance of MCI for the period of 1 January through 30 June 2018, its assets, liabilities and financial position at end of the period. The Board of Directors of Municipality Credit Iceland and the Managing Director hereby confirm the condensed interim financial statements on 30 June 2018 with their signatures. Reykjavik, 21. August 2018 Magnús B. Jónsson Chairman Arna Lára Jónsdóttir Kristinn Jónasson Elliði Vignisson Helga Benediktsdóttir Óttar Guðjónsson Managing Director 2 MCI Plc. Condensed Interim Financial Statement 1 January - 30 June 2018 Report on Review of Condensed Interim Financial Information To the Board of Directors and Shareholders of Municipality Credit Iceland LLC. Introduction We have reviewed the accompanying condensed balance sheet of Municipality Credit Iceland PLC. as of 30 June 2018 and the related condensed statements of income and condensed statements of comprehensive income, changes in equity and cash flows for the six-month period then ended, report of the board of directors and the Managing Director, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with International Accounting Standard 34, "Interim Financial Reporting". Our responsibility is to express a conclusion on this condensed interim financial information based on our review. Scope of Review We conducted our review in accordance with International Standards on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of the condensed interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting". Reykjavik, 21. August 2018 PricewaterhouseCoopers ehf Arna G. Tryggvadóttir State authorized public accountant 3 MCI Plc. Condensed Interim Financial Statement 1 January - 30 June 2018 Condensed Income Statement and Condensed Statement of Comprehensive Income 1 January through 30 June 2018 2018 2017 Notes 1.1.-30.06. 1.1.-30.06. Net interest income Interest income and CPI linked revenue ......................................... 2.660.110.731 2.222.615.253 Interest expenses and CPI linked expenses ................................... (2.233.401.915) (1.705.491.545) Total net interest income 5 426.708.816 517.123.708 Other operating income Net gain on fin. assets designated at FV through P&L ................... 6 3.539.221 14.363.120 Net foreign exchange (loss) gain .................................................... 7 (17.324.316) (11.136.370) Net impairment losses on financial assets ...................................... 14 (3.987.127) 0 Total other operating income (17.772.222) 3.226.750 Net operating income 408.936.594 520.350.458 Operating expenses Salaries and related expenses ........................................................ 8 39.016.662 38.448.564 Cost of bond issuance ..................................................................... 9 23.835.092 22.199.993 FSA's annual fee and monitoring fee .............................................. 6.066.000 5.750.000 Other operating expenses ............................................................... 10 29.386.725 23.923.786 Depreciation .................................................................................... 16 597.814 597.811 Total operating expenses 98.902.293 90.920.154 Income from bankrupt financial institutions ..................................... 15 0 2.871.460 Profit for the period and comprehensive income 310.034.301 432.301.764 Earnings per share Basic and diluted earnings per share .............................................. 11 0,06 0,09 4 MCI Plc. Condensed Interim Financial Statement 1 January - 30 June 2018 Condensed Statement of financial position 30 June 2018 Notes 30.6.2018 31.12.2017 Assets Reserved deposits with Central bank .............................................. 12 125.688.285 0 Cash and term deposits with Central bank ..................................... 12 5.295.819.147 11.805.975.970 Cash deposits with credit institutions .............................................. 13 252.256.945 291.007.716 Loans and receivables .................................................................... 14 91.190.240.250 73.566.191.839 Property, plant and equipment ........................................................ 16 42.444.773 43.042.587 Other assets .................................................................................... 28.409 1.051.995 Total assets 96.906.477.809 85.707.270.107 Liabilities Debt securities in issue ..................................................................