okt.22
Municipality Credit Iceland
Translation of condensed Interim Financial Statements for the period 1 January through 30 June 2017
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 Independent Auditor's Report ...... 3 Income Statement and Statement of Comprehensive Income ...... 4 Statement of Financial Position ...... 5 Statement of Changes in Equity ...... 6 Statement of Cash Flows ...... 7 Notes to the Financial Statements ...... 8-24
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 432 million, as compared to ISK 700 million the same period previous year.
Total assets at the end of the period amounted to ISK 77.007 million, as compared to ISK 78.024 million the previous year. Total outstanding loans amounted to ISK 69.179 (at the end of the period as) compared to 71.175 the previous year. Shareholder equity amounted to ISK 17.114 million as compared to ISK 17.172 million at year end 2016 which is a decrease of 0,3% during the period. Dividend of ISK 491 million was paid out to shareholders in the period. The CAD ratio, based on Basel II, was 99% at period end and increased from 85% at year end 2016.
MCI is owned by the 74 municipalities in Iceland. 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 27.
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 updated in March 2016. Further information can be found in the Annual Report.
Statement The interim financial statements for the period ending 30 June 2017 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 interim financial statements give a true and fair view of the financial performance of MCI for the period of 1 January through 30 June 2017, 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 interim financial statements on 30 June 2017 with their signatures.
Reykjavik, 23 August 2017
Magnús B. Jónsson Chairman
Arna Lára Jónsdóttir Kristinn Jónasson
Elliði Vignisson Helga Benediktsdóttir
Óttar Guðjónsson Managing Director
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 2 Report on Review of 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 LLC. as of 30 June 2017 and the related condensed consolidated statements of report of the board of directors, income, changes in equity and cash flows for the six-month period then ended. Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with International Accounting Standard 34, "Interim Financial Reporting". Our responsibility is to express a conclusion on this 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 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, 23 August 2017
PricewaterhouseCoopers ehf
Arna G. Tryggvadóttir CPA
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 3 Income Statement and Statement of Comprehensive Income 1 January through 30 June 2017
2017 2016 Notes 1.1.-30.06. 1.1.-30.06. Net interest income Interest income and CPI linked revenue ...... 2.222.615.253 2.409.909.470 Interest expenses and CPI linked expenses ...... (1.705.491.545) (1.877.277.366) Total net interest income 5 517.123.708 532.632.104
Other operating income Net gain on fin. assets designated at FV through P&L ...... 6 14.363.120 11.446.515 Net foreign exchange (loss) gain ...... 7 (11.136.370) (5.795.231) Total other operating income 3.226.750 5.651.284
Net operating income 520.350.458 538.283.388
Operating expenses Salaries and related expenses ...... 8 38.448.564 47.049.093 Cost of bond issuance ...... 9 22.199.993 22.704.256 FSA's annual fee and monitoring fee ...... 5.750.000 4.904.000 Other operating expenses ...... 10 23.923.786 28.909.252 Depreciation ...... 17 597.811 597.814 Total operating expenses 90.920.154 104.164.415
Income from bankrupt financial institutions ...... 16 2.871.460 265.677.517
Profit for the period and comprehensive income 432.301.764 699.796.490
Earnings per share Basic and diluted earnings per share ...... 11 0,09 0,14
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 4 Statement of financial position 30 June 2017
Notes 30.6.2017 31.12.2016 Assets Cash and term deposits with Central bank ...... 12 7.220.208.335 5.626.071.452 Cash deposits with credit institutions ...... 13 261.078.810 249.936.916 Loans and receivables ...... 14 69.139.349.134 70.510.956.942 Short term loans ...... 15 40.126.667 663.848.611 Fin. assets designated at fair value through profit or loss ...... 16,18 300.171.031 927.919.306 Property, plant and equipment ...... 17 43.640.401 44.238.212 Other assets ...... 2.434.850 1.205.704 Total assets 77.007.009.228 78.024.177.143
Liabilities Debt securities in issue ...... 19 56.949.012.426 57.058.760.797 Other borrowed funds ...... 20 2.275.638.223 3.175.802.373 Short term borrowings ...... 21 580.658.131 415.592.683 Pension obligations ...... 22 73.437.531 74.589.521 Other liabilities ...... 23 14.634.291 127.104.907 Total liabilities 59.893.380.602 60.851.850.281
Equity Share capital ...... 5.000.000.000 5.000.000.000 Statutory reserve ...... 1.263.597.766 1.274.171.094 Other equity ...... 10.850.030.860 10.898.155.768 Total equity 24 17.113.628.626 17.172.326.862
Total liabilities and equity 77.007.009.228 78.024.177.143
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 5 Statement of Changes in Equity 1 January through 30 June 2017
Retained Share capital Reserves* earnings Total equity
Changes in equity 2017 Equity as at 1 of January ...... 5.000.000.000 1.274.171.094 10.898.155.768 17.172.326.862 Dividend paid out to shareholders ...... (491.000.000) (491.000.000) Profit of the period ...... 432.301.764 432.301.764 Restricted unrealized change in fair value ...... (10.573.328) 10.573.328 0 Equity as at 30th june ...... 5.000.000.000 1.274.171.094 10.850.030.860 17.113.628.626
Changes in equity 2016 Equity as at 1 of January ...... 5.000.000.000 1.250.000.000 10.462.196.770 16.712.196.770 Dividend paid out to shareholders ...... (523.000.000) (523.000.000) Profit January to June ...... 699.796.490 699.796.490 Equity as at 30th june ...... 5.000.000.000 1.250.000.000 10.638.993.260 16.888.993.260 Profit July to December ...... 283.333.602 283.333.602 Restricted unrealized change in fair value ...... 24.171.094 (24.171.094) 0 Equity as at 31th december ...... 5.000.000.000 1.274.171.094 10.898.155.768 17.172.326.862
*Reserves consist of statutory reserve and restricted unrealized change in fair value. In June 2016 Icelandic Act regarding annual statements were changed regarding requirements of restricted equity due to unrealized changes in fair value that restrict the possibility of dividend. See also note 2 and 25.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 6 Statement of Cash Flows 1 January through 30 June 2017
Notes 1.1.-30.6.2017 1.1.-30.6.2016 Cash flows from operating activities Profit for the period and comprehensive income ...... 432.301.764 699.796.490 Items not affecting cash: Net interest income deducted ...... (517.123.708) (532.632.104) CPI linked and currency movements and accrued interests ...... 128.352.059 46.100.420 Bond discount and cost of borrowing ...... 14,19 41.330.104 101.443.933 Pension obligations, (increase) ...... 22 (1.151.990) (824.529) Depreciation ...... 17 597.811 597.814 (347.995.724) (385.314.466) Changes in operating assets Loans provided to customers ...... (1.907.867.564) (2.467.645.725) Loans collected from customers ...... 3.917.661.120 3.457.458.031 Fin.assets design.at FV through P&L, decrease/(increase) ...... 641.346.041 (262.437.864) Short term loans prov. to customers, decrease ...... 610.000.000 190.000.000 Short term loans borrowings, increase / (decrease) ...... 164.954.010 (29.769.218) Other assets, (increase) / decrease ...... (1.229.146) 1.463.825 Other liabilities,(decrease) / increase ...... (112.470.616) 108.606.823 Interest received ...... 1.404.096.542 1.491.528.270 Interest paid ...... (1.157.305.196) (1.125.390.697) 3.559.185.191 1.363.813.445
Net cash from operating activity 3.643.491.231 1.678.295.469
Cash flows from financing activities Borrowings ...... 2.014.420.084 1.695.794.488 Borrowings repaid ...... (3.561.690.255) (2.978.785.761) Dividend to shareholders ...... (491.000.000) (523.000.000) (2.038.270.171) (1.805.991.273)
Net increase (decrease) in cash 1.605.221.060 (127.695.804)
Currency effects on cash and cash equivalents ...... 57.717 4.739.318 Cash and cash equivalents at the beginning of year ...... 5.876.008.368 5.175.857.183 Cash and cash equivalents at end of period ...... 7.481.287.145 5.052.900.697
Cash and cash equivalents Cash and term deposits with Central bank ...... 7.220.208.335 4.765.527.740 Cash deposits at credit institutions ...... 261.078.810 287.372.957 7.481.287.145 5.052.900.697
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 7 Notes
1. General information
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. 161/2002 on Financial undertakings, the Companies Act No. 2/1995 and is supervised by the Icelandic Financial Supervisor. MCI´s main function is to secure favorable funding or guarantees 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 is incorporated and domiciled in Iceland. The address of its registered office is: Borgartún 30, Reykjavík. MCI has issued bonds which are listed at the OMX Nordic Exchange and MCI has market maker agreements in place for a part of them. The Interim finanical statements were approved for issue by the Board of Directors of Municipality Credit Iceland on 23 August 2017.
2. Basis of preperation
The interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The interim financial statements are prepared on the historical cost basis, except for short-term securities which are measured at fair value.
3. Summary of significant accounting policies
The principal accounting policies applied in the preparation of this interim financial statements have been consistently applied to all years, unless otherwise stated.
4. Financial risk management
Through MCI's activities it is exposed to a variety of financial risks and those activities involve the analysis, evaluation, acceptance and management to some degree of risk or combination of risks. Effective risk management includes analysis of main risk factors, risk measurement, processes to limit risk and continous supervision. MCI´s aim is therefore to identify MCI´s main risk factors, implement processes to monitor them, assess them regularly, maintain supervision and rules in order to make sure that the company will surpass any potential macroeconomic scenarios.
The Board of Directors determines MCI's risk management policy and is responsible towards the owners. The Managing Director is responsible to the Board of Directors and proposes new policies and if appropriate, risk limits and is responsible for the monitoring of the major risk factors. MCI has been granted an exemption from operating an internal auditing department in accordance with guidelines from the Financial Services Authority No. 2/2011. The guidelines spell out how an internal audit shall be conducted and that the main role of an internal audit is to oversee the operations to ensure that rules are being followed in accordance with the boards decisions. MCI´s board contracts the annual internal audit of MCI in accordance with the Financial Services Authority´s rules. The internal audit has been conducted by Ernst&Young hf.
MCI is an intermediary for the Icelandic municipalities and their organisations and enterprises to the domestic and foreign financial markets. The main objective is to secure funding on favourable terms. Credit risk is the greatest single risk faced by the company. Liquidity risk, counterparty risk and operational risk are also important to MCI. Market risk is kept at minimum even though it is present in terms of interests and currency risk.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 8 4.1 Credit risk
Exposure to credit risk arises from MCI´s loans to Icelandic municipalities and the State Treasury. MCI solely grants loans to municipalities, their organisations and enterprises. The condition for the provision of credit to municipality-owned enterprises and organisations is that such enterprises and organisations must be wholly owned by municipalities or jointly owned by municipalities and the State Treasury, with both acting as guarantors to the Company for respective loans.
There are now 74 municipalities in Iceland and MCI had loans outstanding to 61 of them. The Local Government Act gives a solid legal framework for the municipalities to operate under. The Icelandic municipalities can technically not become bankrupt but it is stated in the Local Government Act that the State will interefere if financial difficulties will arise within a municipality according to chapter VII in the previous mentiond act. The municipalities have been reliable borrowers historically as MCI has not written off any loans since MCI commenced operations in 1967.
According to the Local Government Act No. 138/2011, municipalities may pledge their revenues as security for loans granted by MCI and for guarantees it provides, but for no other loans or guarantees. When granting loans it is the policy of MCI that such security should be provided for by the municipality in question. At end of the period 99,9% of MCI´s loans to municipalities and companies owned by them had such a pledge.
The total credist risk that MCI takes on when lending money is added to the total book value of loans outstanding in MCI´s balance sheet. When loan applications are reviewed, the borrower has to fulfill all of the legal requirements for receiving a loan as well as the project being of general economic interest. A thorough valuation of the financial position and development of the borrowers and their guarantors is performed. All loan applications are introduced to the board of directors, either for their approval or as an introduction.
At end of the period MCI had one borrower which was defined as large exposures. Large exposures are defined as risk- weighted exposures that exceed 10% of MCI´s equity according to rule nr. 625/2013 by the FSA. Ten of the largest borrowers are liable for 56% of the total loans. According to law on financial institutions nr.161/2002, no single exposure may exceed 25% of MCI´s equity.
4.1.1 Contractual risk
MCI is owned by the Icelandic municipalities and only lends to municipalities and companies owned by municipalities or municipalities and the State. According to the Local Government Act No. 138/2011, municipalities may pledge their revenues as security for loans and guarantess borrowed from MCI and MCI has the policy to take such a pledge for granted loans. Therefore MCI´s contractual commitments are guaranteed by municipalities and the risk is therefore limited to bankruptcy of a municpality or if they will seek moratorium or composition. Counterparty risk excluding the credit risk is limited to the State Treasury and entities with guarantees from the State Treasury as well as domestic financial institutions which have a license from the Financial Services Authority. Risk related to a foreign financial institution shall be approved by the board of directors.
4.1.2 Counterparty risk
The managing director is responsible for MCI´s counterparty risk monitoring. Exposure to counterparty risk is regularly reviewed and managed through analysis and evaluation of loans and defaults. MCI did not apply its pledge in the period but it has been done once, in 2010.
The following table shows MCI´s maximum Counterparty Risk. 30.6.2017 31.12.2016 Counterparty risk position due to balance sheet assets in ISK million: Cash and balances with Central bank ...... 7.220 5.626 Amounts due from credit institutions ...... 261 250 Loans to municipalities and their companies ...... 69.179 71.175 Financial assets designated at fair value through profit or loss ...... 300 928 Other assets ...... 2 1 Total counterparty risk 76.963 77.980
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 9 4.2 Liquidity and Funding Risk
Liquidity risk is the risk that MCI will encounter difficulty in meeting contractual payment obligations associated with its financial liabilities. MCI formulates liquidity management policies regarding its liquidity position and funding, to maintain the flexibility needed. The principal rule is to finish the funding process of a loan before granting a loan commitment. Part of the equity resources is managed short term to ensure a constant access to liquid capital and to maintain flexibility. MCI monitors maturities on the financial instruments in order to secure that it can pay all liabilities on due dates. MCI always has to have enough liquidity to be able to meet predictable and unpredictable obligations. The following tables present the future cash flow in line with contractual repayments.
Balance 30.06.2017 in ISK million 0-1 1 to 3 3 to 12 1 to 5 Over 5 months months months years years Total Financial assets Cash and deposits ...... 7.481 - - - - 7.481 Financial assets at fair value ...... 300 - - - - 300 Loans ...... 331 3.182 6.128 34.874 41.028 85.543 Total financial assets 8.112 3.182 6.128 34.874 41.028 93.324
Financial liabilities Bonds and debt instruments ...... 793 2.466 5.205 29.023 36.988 74.475 Total financial liabilities 793 2.466 5.205 29.023 36.988 74.475
Net, assets - liabilities 7.319 716 923 5.851 4.040 18.849
Balance 31.12.2016 in ISK million 0-1 1 to 3 3 to 12 1 to 5 Over 5 months months months years years Total Financial assets Cash and deposits ...... 5.876 - - - - 5.876 Financial assets at fair value ...... 923 - - - - 923 Loans ...... 815 2.990 6.440 35.317 42.724 88.286 Total financial assets 7.614 2.990 6.440 35.317 42.724 95.085
Financial liabilities Bonds and debt instruments ...... 417 2.882 4.761 29.049 38.337 75.446 Total financial liabilities 417 2.882 4.761 29.049 38.337 75.446
Net, assets - liabilities 7.197 108 1.679 6.268 4.387 19.639
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 10 4.3 Interest rate and CPI risk
MCI´s aim with regards to interest rate risk to balance the repayment profile of both assets and liabilities as well as to balance the fixed and variable interest rates. In general, loans are provided on the same terms as their financing with regards to life time of the loan, repayment profile, interest rates, interest periods as well as amending interest premiums. Part of the loans are funded with MCI´s equity with variable interest rates which the company can amend unilaterally.
Financial assets and liabilities, classified by interest repricing time, in ISK million as at 30.06.2017
0-1 years 1-5 years 5-10 years Over 10 Y Total Financial assets ISK - CPI linked ...... 7.229 24.628 17.566 15.233 64.655 ISK - non indexed ...... 9.738 - - - 9.738 EUR ...... 2.387 - - - 2.387 USD ...... 45 - - - 45 GBP ...... 9 - - - 9 JPY ...... 53 - - - 53 CHF ...... 73 - - - 73 Total financial assets 19.534 24.628 17.566 15.233 76.960
Financial liabilities ISK - CPI linked ...... 5.852 21.082 14.982 15.205 57.121 ISK - non indexed ...... 705 - - - 705 EUR ...... 2.104 - - - 2.104 USD ...... 0 - - - 0 Total financial liabilities 8.661 21.082 14.982 15.205 59.930
Net assets - liabilities 10.873 3.546 2.584 28 17.030
Financial assets and liabilities, classified by interest repricing time, in ISK million as at 31.12.2016
0-1 years 1-5 years 5-10 years Over 10 Y Total Financial assets ISK - CPI linked ...... 7.036 23.971 18.927 15.096 65.030 ISK - non indexed ...... 9.466 - - - 9.466 EUR ...... 3.146 - - - 3.146 USD ...... 186 - - - 186 JPY ...... 10 - - - 10 CHF ...... 65 - - - 65 GBP ...... 77 - - - 77 Total financial assets 19.986 23.971 18.927 15.096 77.979
Financial liabilities ISK - CPI linked ...... 5.696 20.170 16.495 14.862 57.224 ISK - non indexed ...... 416 - - - 416 EUR ...... 2.877 - - - 2.877 USD ...... 133 - - - 133 Total financial liabilities 9.122 20.170 16.495 14.862 60.650
Net assets - liabilities 10.864 3.801 2.431 233 17.329
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 11 4.3 Interest rate and CPI risk, cont.
Interest sensitivity
Interest sensitivity analysis with the assumption of average lifetime shows that 1 percentage interest increase would increase net interest revenue by ISK 126 million or 0,7% of MCI´s equity as compared to ISK 130 million and 0,8% of MCI´s equity as of year end 2016. The table below shows the effects of interest rate increase split down to asset and liability groups according to repricing time in ISK million.
Parallel upwards shift on interest curve 30.6.2017 31.12.2016 (bps) Profit (loss) ISK - CPI linked ...... 100 128 133 ISK - non indexed ...... 100 (1) (2) Foreign currencies ...... 100 (1) (1) Total 126 130
Inflation (CPI) risk
At period end, MCI´s CPI linked assets exceeded CPI linked liabilities by ISK 7.534 millions as compared to ISK 7.806 million in year end 2016. It has the effect that if the consumer price index increases by 1% then MCI's profit would increase by ISK 75 million and 1% decrease would reduce the profit by ISK 75 million.
CPI link effects 30.6.2017 31.12.2016
CPI linked assets ...... 64.655 65.030 CPI linked liabilities ...... 57.121 57.224 Net CPI linked position 7.534 7.806
4.4 Currency risk
MCI´s policy is to be in compliance with Central Banks rules and to eliminate currency risk by minimizing the mismatch between financial assets and financial liabilities denominated in foreign currencies.
Currency sensitiviy analysis
A sensitivity analsysis on MCI´s currency position reveals that 10% weakening of the Icelandic krona will increase MCI's profit and equity by ISK 46 million which represents 0,3% of equity. The table below illustrates the sensitivy analysis whereby MCI´s currency position is split down to each currency and shows the effect on profit and equity if the Icelandic krona would weaken by 10% with respect to foreign currencies.
Currency sensitivity analysis in ISK million Currencies strengthening/ weakening 30.6.2017 31.12.2016 towards the ISK Profit (loss) EUR ...... (10%) 28 27 USD ...... (10%) 5 5 JPY ...... (10%) 5 7 CHF ...... (10%) 7 7 GBP ...... (10%) 1 1 Total 46 46
The following table lists the exchange rates employed in calculations applicable to this annual statement.
30.6.2017 31.12.2016 Change % EUR/ISK ...... 118,16 119,46 (1,1%) USD/ISK ...... 103,59 113,09 (8,40%) JPY/ISK ...... 0,9254 0,9684 (4,4%) CHF/ISK ...... 108,07 111,12 (2,7%) GBP/ISK ...... 134,31 139,25 (3,55%)
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 12 4.4 Currency risk, cont.
Financial assets and liabilities in ISK million as at 30.06.2017 Other EUR USD JPY currencies Total Financial assets Cash and deposits ...... 233 1 - - 234 Loans ...... 2.154 44 53 82 2.333 Total financial assets 2.387 45 53 82 2.567
Financial liabilities Borrowed funds ...... 2.104 - - - 2.104 Total financial liabilities 2.104 0 0 0 2.104
Net, assets-liabilities 283 45 53 82 463
Financial assets and liabilities in ISK million as at 31.12.2016 Other EUR USD JPY currencies Total Financial assets Cash and deposits ...... 228 - - - 229 Loans ...... 2.918 185 65 87 3.255 Total financial assets 3.146 186 65 87 3.484
Financial liabilities Borrowed funds ...... 2.877 133 - - 3.010 Total financial liabilities 2.877 133 0 0 3.010
Net, assets-liabilities 269 53 65 87 474
4.5 Operational risk
Regarding operational risk, MCI aims to have written and clear policies for all major business processes and standardise its loan agreements. It has also been a policy to outsource administrative services in order to minimise risk by distributing operations. As the operation of MCI can be characterised as relatively simple with the clients both being homogeneous and limited, the operational risk is limited.
4.5.1 Employee risk
MCI has three employees, Managing director, Credit manager and Treasury manager. In addition to that the company has outsourced various administrative services to The Association of Local Authorities in Iceland which has worked well and will be continued.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 13 4.5.2 Legal risk
MCI operates pursuant to Act no. 150/2006 on the incorporation of Municipality Credit Iceland as a statutory limited liability company, Act no.161/2002 on financial undertakings and the companies Act no. 2/1995. MCI can not take responsibility on changes in law, court rulings or government decisions.
There is no litigation outstanding against MCI.
4.6 Equity management
The aim with equity management is that MCI has always enough equity to counterbalance against MCI´s underlying risk factors.
MCI´s equity consists of share capital, statutory reserve and retained earnings (Tier 1). The minimum capital requirement according to paragraph 84 in Act no. 161/2002 is 8% of risk weighted assets. The requirements are based on the European legal framework for capital requirements (CRD) implementing the Basel framework. The regulatory minimum capital requirement under Pillar I of the Basel framework is 8% of risk-weighted assets (RWA) for credit risk, market risk and operational risk. MCI applies the standardised approach when it comes to calculating credit risk and market risk, but basic indicator approach when it comes to operational risk.
FME conducted a SREP assessment on MCI´s ICAAP report in 2015. The outcome of the assessment was introduced to MCI and the analysis confirms that MCI´s equity is well above the standard set by (MCI as well as the standards set by) FME.
In July 2015 changes were made on act no. 161/2002 implementing items regarding Basel III capital requirements. This changes will add to the minimum capital requirement for MCI in 2017 by 1,75% due to capital conservation buffer.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 14 5. Net interest income 1.1.-30.6.2017 1.1.-30.6.2016
Interest income and CPI linked revenue Loans ...... 2.052.039.497 2.273.426.156 Cash and short term funds ...... 170.575.756 136.483.314 2.222.615.253 2.409.909.470
Interest expense and CPI linked expenses Debt securities in issue and other borrowed funds ...... 1.705.491.545 1.877.277.366 Net interest income 517.123.708 532.632.104
6. Net gain on financial assets designated at fair value through profit or loss 1.1.-30.6.2017 1.1.-30.6.2016
Money market securities ...... 0 1.614.535 Money market funds ...... 14.363.120 9.831.980 14.363.120 11.446.515
7. Net foreign exchange gains 1.1.-30.6.2017 1.1.-30.6.2016
Loans ...... (45.562.599) (165.817.135) Borrowings ...... 34.483.946 164.761.222 Cash deposits at credit institutions ...... (57.717) (4.739.318) (11.136.370) (5.795.231)
8. Salaries and salary related expenses
At the end of period there were three employees working for MCI. MCI has entered into a service agreement with the Icelandic Association of Local Authorities regarding the purchase of administrative services and such expense is recorded under the other operational expenses item. All board members receive 8% pension fund remuneration and the Managing Director 12%. Difference in salaries are due to changes in employees in 2016.
1.1.-30.6.2017 1.1.-30.6.2016
Salaries ...... 31.935.629 39.365.703 Paid pension contribution ...... 3.408.649 4.048.680 Related expenses ...... 3.104.286 3.634.710 38.448.564 47.049.093
Óttar Guðjónsson, Managing Director ...... 12.454.732 10.458.937
Board of directors: Magnús B. Jónsson, chairman of the board ...... 984.942 914.711 Kristinn Jónasson, vice chairman of the board ...... 656.634 609.811 Helga Benediktsdóttir, chairman of accounting committee ...... 853.626 801.165 Elliði Vignisson ...... 656.634 609.811 Eydís Ásbjörnsdóttir ...... 437.756 609.811 Arna Lára Jónsdóttir ...... 218.878 0 Kristín María Birgisdóttir ...... 109.439 0 3.917.909 3.545.309
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 15 9. Bond issuance costs 1.1.-30.6.2017 1.1.-30.6.2016
Market makers ...... 17.750.000 17.750.000 Bond issuance fees ...... 545.130 934.500 Annual fees related to bond issuance ...... 3.904.863 4.019.756 22.199.993 22.704.256
10. Other operating expenses 1.1.-30.6.2017 1.1.-30.6.2016
Contract with the Icelandic Association of Local Authorities ...... 9.826.464 8.933.664 Professional fees (legal and other) ...... 1.347.300 7.546.960 Housing expenses ...... 2.658.859 3.072.605 Computer and software ...... 3.089.981 2.343.381 Auditor´s fees ...... 3.003.536 2.357.625 Travelling expenses ...... 1.707.873 1.403.624 Office equipment ...... 372.685 761.321 Other operating expenses ...... 1.917.088 2.490.072 23.923.786 28.909.252
11. Earnings per share 1.1.-30.6.2017 1.1.-30.6.2016
Profit for the period ...... 432.301.764 699.796.490 Weighted average number of ordinary shares in issue ...... 5.000.000.000 5.000.000.000 Earnings per share ...... 0,09 0,14
12. Cash and balances with the Central bank 30.6.2017 31.12.2016
Deposits with the Central bank ...... 406.767.502 316.279.786 Term deposits with the Central bank ...... 6.813.440.833 5.309.791.666 7.220.208.335 5.626.071.452
Cash and balances with the Central bank as well as amounts due from credit institutions constitute cash and cash equivalents at period end as stated in the statement of Cash Flows, amounted to ISK 7.481 million as compared to ISK 5.876 at year end 2016.
13. Amounts due from credit institutions 30.6.2017 31.12.2016
Bank accounts ...... 261.078.810 249.936.916
14. Loans and receivables 30.6.2017 31.12.2016
CPI linked loans ...... 64.655.084.497 65.029.817.912 Foreign currency loans ...... 2.334.025.030 3.253.960.055 Non - CPI linked loans ...... 2.150.239.607 2.227.178.975 69.139.349.134 70.510.956.942
Remaining balance of discounts and loan fees at period end is ISK 318,9 million. In 2016-year end, remaining balance were ISK 323,8 million.
15. Short term loans 30.6.2017 31.12.2016
Non CPI linked loans ...... 40.126.667 663.848.611
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 16 16. Financial assets designated at fair value 30.6.2017 31.12.2016
Money market funds ...... 300.171.031 927.919.306 300.171.031 927.919.306
MCI has two claims outstanding against bankrupt financial institutions as described below: On 30 May 2016 Surpreme court ruled that MCI claim against Glitnir bank was ISK 888,7 million. Estimated payout of the claim is 30%. MCI has recognized ISK 259,8 million in the year 2016 and ISK 2,8 million in this period, through profit and loss account . MCI has a ISK 135 million confirmed claim aginst SPRON, dated on the 10 March 2010. Estimated payout is below 5%. In the same period in 2016 ISK 5,9 million was recognized through profit and loss account.
17. Property, plant and equipment 30.6.2017 31.12.2016
Net book amount at the beginning of the year ...... 44.238.212 45.433.840 Depreciation during the period ...... (597.811) (1.195.628) Net book amount at period end ...... 43.640.401 44.238.212
Net book amount is specified as: Historical cost ...... 59.781.372 59.781.372 Accumulated depreciation ...... (16.140.971) (15.543.160) Net book amount ...... 43.640.401 44.238.212
Real estate evaluation at year end 2016 amounted to ISK 87 million and assessed value for fire insurance amounted to ISK 85,9 million. Insured value for real estate was ISK 81 million for the year 2016.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 17 18. Classification and measurement of financial assets and liabilities
According to IAS39 "Financial Instruments: Recognition and Measurement", financial assets and financial liabilities must be classified into specific categories which then determines the subsequent measurement of the instrument.
Each category´s basis of subsequent measurement is specified below: - Loans and receivables, at amortized cost; - Financial assets designated as at fair value through profit or loss, measured at fair value; - Other liabilities, at amortized cost.
The following table shows the classification of financial assets and financial liabilities :
30 June 2017 Loans and Designated as Liabilities at Total carrying Assets receivables at fair value amortized cost amount Fair value Cash and balances with Central Bank ...... 7.220.208.335 - - 7.220.208.335 7.220.208.335 Loans to credit institutions ...... 261.078.810 - - 261.078.810 261.078.810 Loans and receivables ...... 69.139.349.134 - - 69.139.349.134 68.939.260.862 Short loans to customers ...... 40.126.667 - - 40.126.667 40.126.667 Marketable securities ...... - 300.171.031 - 300.171.031 300.171.031 Total assets 76.660.762.946 300.171.031 0 76.960.933.977 76.760.845.705
Liabilities Bonds and debt instruments ...... - - 59.805.308.780 59.805.308.780 63.294.838.537 Total liabilities 0 0 59.805.308.780 59.805.308.780 63.294.838.537
31 December 2016 Loans and Designated as Liabilities at Total carrying Assets receivables at fair value amortized cost amount Fair value Cash and balances with Central Bank ...... 5.626.071.452 - - 5.626.071.452 5.626.071.452 Loans to credit institutions ...... 249.936.916 - - 249.936.916 249.936.916 Loans and receivables ...... 70.510.956.942 - - 70.510.956.942 69.802.012.286 Short loans to customers ...... 663.848.611 - - 663.848.611 663.848.611 Marketable securities ...... - 927.919.306 - 927.919.306 927.919.306 Total assets 77.050.813.921 927.919.306 0 77.978.733.227 77.269.788.571
Liabilities Bonds and debt instruments ...... - - 60.650.155.853 60.650.155.853 63.002.609.414 Total liabilities 0 0 60.650.155.853 60.650.155.853 63.002.609.414
The fair value of MCI´s bonds is based on their trading price at period end.
The loan portfolios fair value is measured by calculating the present value using the funds bonds in addition to a 15bp spread. The spread is a combination of 10bp to cover direct bond issuance and market making costs as well as 5bp towards MCI operational costs.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 18 19. Classification and measurement of financial assets and liabilities (continued)
Municipality Credit Iceland uses a valuation hierarchy for disclosure of inputs to valuation used to measure fair value. Fair value measurements of financial instruments are made on the basis of the following hierarchy:
Level 1: Quoted prices are used for assets and liabilities traded in active markets.
Level 2: Valuation technique based on observable inputs. The most recent transaction prices in combination with generally accepted valuation methods are used to measure fair value of shares. However, the yield of actively traded bonds with the same duration is used as a benchmark for the valuation of bonds.
Level 3: Valuation technique based on significant non-observable inputs. It covers all instruments for which the valuation technique includes inputs based on unobservable data and the unobservable inputs have significant effect on the instrument’s valuation.
The following table shows the level in the heirarchy of financial assets and liabilities, carried at fair value in the balance sheet:
30 June 2017 Level 1 Level 2 Level 3 Total Assets Bonds and debt instruments ...... 300.171.031 - - 300.171.031 Total 300.171.031 0 0 300.171.031
31 December 2016 Level 1 Level 2 Level 3 Total Assets Bonds and debt instruments ...... 923.234.814 4.684.492 - 927.919.306 Total 923.234.814 4.684.492 0 927.919.306
The following table shows the Level in the heirarchy into which the fair value of financial assets and liabilities, not carried at fair value in the balance sheet:
30 June 2017 Level 1 Level 2 Level 3 Total Assets Cash and term deposits with Central Bank ...... - 7.220.208.335 - 7.220.208.335 Loans to credit institutions ...... - 261.078.810 - 261.078.810 Loans and receivables ...... - 69.139.349.134 - 69.139.349.134 Short term loans to customers ...... - 40.126.667 - 40.126.667 Total 0 76.660.762.946 0 76.660.762.946
Liabilities Bonds and debt instruments ...... 59.805.308.780 - - 59.805.308.780 Total 59.805.308.780 0 0 59.805.308.780
31 December 2016 Level 1 Level 2 Level 3 Total Assets Cash and term deposits with Central Bank ...... - 5.626.071.452 - 5.626.071.452 Loans to credit institutions ...... - 249.936.916 - 249.936.916 Loans and receivables ...... - 70.510.956.942 - 70.510.956.942 Short loans to customers ...... - 663.848.611 - 663.848.611 Total 0 77.050.813.921 0 77.050.813.921
Liabilities Bonds and debt instruments ...... 60.650.155.853 - - 60.650.155.853 Total 60.650.155.853 0 0 60.650.155.853
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 19 19. Debt securities in issue Weighted average interest rate* 30.6.2017 31.12.2016 30.6.2017 31.12.2016
LSS '03, notes due 2018 ...... 5,17% 5,17% 131.107.888 194.606.793 LSS '04, notes due 2019 ...... 4,08% 4,08% 670.431.191 650.068.055 LSS '05-2, notes due 2022 ...... 4,30% 4,30% 3.216.040.661 3.887.324.090 LSS 150224, notes due 2024 ...... 4,64% 4,64% 23.392.089.350 24.542.314.214 LSS 150434, notes due 2034 ...... 3,44% 3,48% 23.806.165.199 22.049.239.146 LSS '08 1, notes due 2034 ...... 5,29% 5,29% 2.294.659.510 2.337.891.636 LSS 151155, notes due 2055 ...... 3,07% 3,07% 3.438.518.627 3.397.316.863 Debt securities in issue total 56.949.012.426 57.058.760.797
* Weighted average interest rate is calculated in accordance with the effective interest rate method. Remaining balance of discounts and cost of borrowing at period end is ISK 305,5 million. In 2016 year end remaining balance were ISK 469 millions.
20. Other long term borrowings Interest rate 30.6.2017 31.12.2016 30.6.2017 31.12.2016
EUR loans (EURIBOR + margin) ...... 0,23% 0,22% 2.103.788.670 2.877.193.163 USD loans (LIBOR + margin) ...... 0,14% 0 133.444.226 ISK loans (CPI linked) ...... 6,09% 6,09% 171.849.553 165.164.984 Other long term borrowings total ...... 2.275.638.223 3.175.802.373
Interest rate 21. Short term borrowings 30.6.2017 31.12.2016 30.6.2017 31.12.2016
ISK loans, non-CPI linked ...... 4,75% 5,25% 580.658.131 415.592.683
MCI owns some of its own securities in LSS150434 and LSS150224 which are lent to market makers. The securities lending amount to ISK 278 million, where ISK 154 million are collatoralised with cash and ISK 124 million with government bonds.
22. Post-employment obligations
MCI and other jointly administrated institutions are subject to pension obligations related to their employees, that have and do participate in the B-department of the State Employees' Pension Fund. The calculations of an actuary has been calculated for the pension obligations and recorded as liability in the balance sheet based on a 2,0% interest rate. New life expectancy rate according to 2010-2014 values. Post-employment obligation is not regarding present employees.
Post-employment obligations are specified as: 30.6.2017 31.12.2016
Pension liability at beginning of year ...... 74.589.521 71.000.943 Paid during the period ...... (1.151.990) (2.178.804) Increase during the period ...... 0 5.767.382 Pension obligation total 73.437.531 74.589.521
23. Other liabilities 30.6.2017 31.12.2016
Creditors ...... 11.301.509 1.889.070 Unpaid salary related expenses ...... 3.332.782 3.150.543 Unpaid capital income tax ...... 0 122.065.294 Other liabilities total 14.634.291 127.104.907
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 20 24. Equity The minimum capital requirement according to paragraph 84 in Act no. 161/2002 is 8% of risk weighted assets. The requirements are based on the European legal framework for capital requirements (CRD) implementing the Basel framework. The regulatory minimum capital requirement under Pillar I of the Basel framework is 8% of risk-weighted assets (RWA) for credit risk, market risk and operational risk. MCI applies the standardised approach when it comes to calculating credit risk and market risk, but basic indicator approach when it comes to operational risk. Requirements based on Basel III were added in to act no. 161/2002, in July 2015 which will increase the minimum capital requirement for 2017 to 9,25%.
At the end of the period the total share capital was ISK 5.000 million. One vote is entitled to each nominal ISK.
The capital adequacy ratio is determined as follows:
30.6.2017 31.12.2016 Equity Share Capital ...... 5.000.000.000 5.000.000.000 Statutory reserve ...... 1.250.000.000 1.250.000.000 Restricted unrealized change in fair value ...... 13.597.766 24.171.094 Other equity ...... 10.850.030.860 10.898.155.768 Equity total 17.113.628.626 17.172.326.862
Risk base Credit risk ...... 15.002.284.801 17.928.927.160 Market risk ...... 463.961.957 472.165.997 Operational risk ...... 1.750.141.402 1.750.141.402 Risk base total 17.216.388.160 20.151.234.559
Capital adequacy ratio Capital adequacy ratio ...... 99% 85%
Reserves consist of statutory reserve and restricted unrealized change in fair value. This change is per amendment in Icelandic Act on Annual Statements No. 3/2006 regarding that all unrealized changes in value of financial assets, that are initially recognized at fair value, shall be recognize in a restricted reserve among equity, that prohibited dividend payments. See details in Statement of changes in Equity. There is still some uncertainty regarding interpretation and proceedings of this amendment and therefore representation of the Statement on changes in Equity and notes could change following years.
MCI´s capital requirement is at period end is 99%. The Icelandic government credit rating was upgraded in January 2017 where foreign loans to municipalities transferred from 100% risk weight to 50% risk weight. This increased MCI´s CAD ratio from 85% at year end 2016 to 99%.
In conformity with Pillar II of the Basel framework, MCI annually assesses its own capital needs through the Internal Capital Adequacy Assessment Process (ICAAP). The ICAAP results are subsequently reviewed by the Financial Supervisory Authority (FME) in the Supervisory Review and Evaluation Process (SREP). The company´s equity assessment, with the ICAAP analysis, is a key element in MCI's equity and risk management.
FME conducted a SREP assessment on MCI´s ICAAP report in 2016. The outcome of the assessment was introduced to MCI and the analysis confirms that MCI´s equity is well above the standard set by MCI as well as the standards set by FME.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 21 25. Related party disclosures
Related parties are defined as municipalities and companies, owned by them, which are related to members and reserve members of MCI´s board of directors as well as municipalities and related companies who are among the 10 largest shareholders of MCI. This definition is based on IAS 24. Information regarding related parties are as follows:
30.6.2017 31.12.2016
Balance at the beginning of year...... 43.276.090.203 43.440.219.016 New loans to related parties...... 1.114.120.275 4.318.636.973 Loan repayments from related parties...... (2.545.377.988) (4.959.688.751) Other changes...... 791.152.218 476.922.965 Balance at period end...... 42.635.984.708 43.276.090.203
Interest income...... 822.164.916 1.600.662.628 Interest expense...... 11.058.517 22.483.255
Information about directors´salary, see note 8. Expenses paid to the Icelandic Association of Local Authorities, see note 10. Short term borrowings to related parties at period end, see note 21. Transactions with related parties are all in the normal course of MCI´s activities.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 22 26. Outstanding loans
The table below shows the outstanding loans by borrower type. MCI has lent ISK 58.051 million to municipalities and ISK 11.140 million to companies owned 100% by municipalities, a grand total of ISK 69.191 million.
Municipality Amount Habitants Municipality Amount Habitants Kópavogsbær 8.091 34.140 Seyðisfjarðarkaupstaður 323 658 Hafnarfjarðarkaupstaður 8.041 28.189 Langanesbyggð 286 505 Sveitarfélagið Árborg 5.604 8.206 Djúpavogshreppur 276 456 Mosfellsbær 3.277 9.481 Tálknafjarðarhreppur 248 267 Fljótsdalshérað 2.951 3.443 Mýrdalshreppur 230 525 Fjarðabyggð 2.857 4.693 Rangárþing eystra 219 1.774 Sveitarfélagið Skagafjörður 2.363 3.902 Strandabyggð 215 467 Ísafjarðarbær 2.025 3.623 Fjallabyggð 204 2.025 Garðabær 1.762 14.717 Dalabyggð 202 678 Sandgerðisbær 1.512 1.577 Húnaþing vestra 172 1.160 Borgarbyggð 1.314 3.637 Hörgársveit 161 557 Hveragerðisbær 1.298 2.463 Skaftárhreppur 159 470 Reykjanesbær 1.161 15.233 Breiðdalshreppur 134 183 Sveitarfélagið Ölfus 1.127 1.956 Eyjafjarðarsveit 58 1.035 Stykkishólmsbær 1.117 1.113 Vopnafjarðarhreppur 53 650 Bolungarvíkurkaupstaður 1.056 904 Sveitarfélagið Hornafjörður 53 2.171 Akraneskaupstaður 1.048 6.908 Grýtubakkahreppur 51 357 Vesturbyggð 1.026 1.013 Kjósarhreppur 43 217 Grímsnes- og Grafningshreppur 796 465 Húnavatnshreppur 41 403 Norðurþing 785 2.825 Seltjarnarneskaupstaður 38 4.415 Grundarfjarðarbær 742 899 Reykhólahreppur 32 267 Blönduósbær 645 865 Hvalfjarðarsveit 25 622 Akureyrarkaupstaður 632 18.294 Skútustaðahreppur 23 408 Rangárþing Ytra 574 1.526 Skeiða- og Gnúpverjahreppur 21 521 Snæfellsbær 554 1.663 Skagabyggð 20 109 Hrunamannahreppur 531 807 Súðavíkurhreppur 18 184 Dalvíkurbyggð 426 1.840 Kaldrananeshreppur 9 103 Bláskógabyggð 372 979 Flóahreppur 9 619 Sveitarfélagið Vogar 352 1.148 Tjörneshreppur 4 60 Þingeyjarsveit 347 918 Árneshreppur 4 55 Reykjavíkurborg 334 122.460 Municipal owned company Amount Municipal owned company Amount Félagsbústaðir hf 5.433 Félagsþjónusta A-Hún bs 63 Orkuveita Reykjavíkur 991 Skagafjarðarveitur 50 Reykjaneshöfn 902 Jeratún ehf 46 Norðurá bs. 472 Bolungarvíkurhöfn 35 Brunavarnir Árnessýslu 385 Fasteignir Húnavatnshrepps ehf. 31 Höfði hjúkrunar- og dvalarheimili 300 Þorlákshafnarhöfn 27 Hitaveita Egilsstaða og Fella ehf. 297 Dvalarheimilið Kirkjuhvoll 23 Héraðsnefnd Árnesinga bs. 295 Hólmavíkurhöfn 18 Selfossveitur 280 Listasafn Árnesinga 15 Norðurorka 266 Hitav. Húnaþings vestra 13 Fasteignafél. Hveragerðisbæjar 246 Orkuveita Húsavíkur 11 Slökkvilið höfuðborgarsvæðisins 237 Hitaveita Laugarvatns 7 Fasteignafélag Fljótsdalshéraðs 222 Faxaflóahafnir 7 Sorpstöð Rangárvallasýslu bs 149 Strætó bs 6 SORPA bs 125 Félags- og skólaþj Rangárv & V Skaft 3 Byggðasafnið í Skógum 107 Sorpstöð Héraðs bs 1 Húnanet 76 MCI has received permission in writing from its borrowers whereby they approve of the publication of their total borrowings from MCI. This is done in order to be able to publish the information in financial statements and investor reports where total loans are split down by municipalities and companies owned by them. This permission was sought in accordance with article 60 of Act no. 161/2002 on financial institutions.
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 23 27. List of shareholders
MCI is owned by all 74 municipalities in Iceland. Reykjavik is the only shareholder with a share above 10%, holding 17,5% of MCI´s shares. The ten biggest shareholders together own 56% of MCI´s shares. Below is a table presenting all MCI´s shareholders and their respective share.
Shares Shares Municipality in % Municipality in % Akrahreppur 0,08% Kópavogsbær 5,52% Akraneskaupstaður 2,41% Langanesbyggð 0,54% Akureyrarkaupstaður 5,49% Mosfellsbær 1,49% Árneshreppur 0,04% Mýrdalshreppur 0,37% Ásahreppur 0,04% Norðurþing 2,22% Bláskógabyggð 0,63% Rangárþing eystra 1,67% Blönduósbær 1,47% Rangárþing ytra 1,72% Bolungarvíkurkaupstaður 0,83% Reykhólahreppur 0,30% Borgarbyggð 1,78% Reykjanesbær 3,03% Borgarfjarðarhreppur 0,09% Reykjavíkurborg 17,47% Breiðdalshreppur 0,35% Sandgerðisbær 0,63% Dalabyggð 0,61% Seltjarnarneskaupstaður 1,16% Dalvíkurbyggð 1,35% Seyðisfjarðarkaupstaður 0,98% Djúpavogshreppur 0,33% Skaftárhreppur 0,38% Eyja- og Miklaholtshreppur 0,05% Skagabyggð 0,03% Eyjafjarðarsveit 0,37% Skeiða- og Gnúpverjahreppur 0,37% Fjallabyggð 2,39% Skorradalshreppur 0,02% Fjarðabyggð 3,00% Skútustaðahreppur 0,21% Fljótsdalshérað 1,59% Snæfellsbær 1,77% Fljótsdalshreppur 0,03% Strandabyggð 0,45% Flóahreppur 0,25% Stykkishólmsbær 1,85% Garðabær 3,76% Súðavíkurhreppur 0,30% Grindavíkurbær 1,09% Svalbarðarstandarhreppur 0,18% Grímsnes- og Grafningshreppur 0,22% Svalbarðshreppur 0,08% Grundarfjarðarbær 0,60% Sveitarfélagið Árborg 3,05% Grýtubakkahreppur 0,13% Sveitarfélagið Garður 0,46% Hafnarfjarðarkaupstaður 4,25% Sveitarfélagið Hornafjörður 1,35% Helgafellssveit 0,02% Sveitarfélagið Skagafjörður 2,34% Hrunamannahreppur 0,24% Sveitarfélagið Skagaströnd 0,29% Húnavatnshreppur 0,15% Sveitarfélagið Vogar 0,42% Húnaþing vestra 0,89% Sveitarfélagið Ölfus 0,86% Hvalfjarðarsveit 0,22% Tálknafjarðarhreppur 0,20% Hveragerðisbær 0,96% Tjörneshreppur 0,02% Hörgársveit 0,17% Vestmannaeyjabær 5,81% Ísafjarðarbær 4,15% Vesturbyggð 1,32% Kaldrananeshreppur 0,06% Vopnafjarðarhreppur 0,68% Kjósárhreppur 0,08% Þingeyjarsveit 0,34%
MCI Plc. Interim Financial Statement 1 January - 30 June 2017 24