Strong performance for Heritable Bank

Heritable Bank, the UK banking subsidiary of Landsbanki Islands, has announced a strong performance, for the nine months to the end of September 2005.

It has had a pre-tax operating profit of 5.86m compared to 3.07m for the same period of 2004, an increase of 91%, and assets of 551m, an increase of 51% since the beginning of 2005.

The bank has noted that new mortgage applications are 22% higher, whilst new completions are up 26% on the same period last year, and that pre-tax operating return on equity of 25%.

Mark Sismey-Durrant, chief executive of Heritable Bank, says: Performance so far in 2005 has been extremely pleasing for all of the Banks operations. Heritable Bank has significantly increased the scale and diversity of its operations over the past two years, resulting in both higher profitability and return on equity. The results recorded for the first nine months of 2005 justify the strategy that the Bank has followed since the beginning of 2003, when the assets were 100m.

Ketan Malde, finance director of Heritable Bank, adds: The results announced today show that we are building a business that meets the shareholder objective of achieving scale, combined with long-term sustainable profitable growth, across all areas of operation.