STOCKHOLM (Dow Jones)--The co-chief executive of Icelandic bank Landsbanki Islands Hf (LAIS.IC) Thursday said he expects operations abroad to contribute more than half the bank's net operating revenue by 2007 or early 2008.
"I would be surprised if it doesn't happen already in 2007," Chief Executive Sigurjon Arnason told Dow Jones Newswires in an interview.
The bank's foreign operations currently account for around 45% of its operating revenue.
The growth abroad, Arnason said, would mainly be through growing the bank's existing business, as it focuses on integrating operations it already owns.
However smaller add-on acquisitions could be considered. "We see that as part of the integration," he said.
"But when we're done, then of course we're again on the lookout (for bigger acquisitions)," he said.
Arnason is co-chief executive along with Halldor Kristjansson.
He added that although the bank previously expected around 50% of net operating revenue to come from its overseas operations, it now has "no goal to stop at" in that respect, with the domestic Icelandic market for banking services now getting saturated.
Last year, Landsbanki acquired U.K. stockbroker Teather & Greenwood, French equity broker Kepler Equities and Irish securities house Merrion Capital.
It also has operations in the U.S., Canada, Norway, Luxembourg, Netherlands, Spain, Italy and Germany.
Earlier Thursday, Landsbanki reported a second-quarter net profit of 5.97 billion Icelandic kronur ($1=ISK72.31), compared with ISK5 billion in the year-ago period.
Net operating revenue jumped to ISK19.13 billion from ISK11.9 billion. Last year's comparative figure didn't include figures from the Merrion Capital or Kepler Equities acquisitions.
Company Web site: http://www.landsbanki.is
-By Louise Nordstrom, Dow Jones Newswires; +46 8 545 130 97; email@example.com
(END) Dow Jones Newswires