Reykjavik, 12 September 2006 - Glitnir today announced changes in the bank's organisational structure, following years of exceptional growth. The changes announced today follow the consolidation of the Capital Market units and the establishment of a Shared Services unit, which were implemented August 24th. The organisational adjustments aim at optimising management focus, ensuring efficiency and integration, and building an even stronger platform for further profitable growth. "Following two years of strong international organic growth and seven acquisitions, we adjust the organisation to its new scope," said Bjarni Ármannsson, CEO of Glitnir. "The new organisational structure enables us to reach a new level and to live our values - smart, fast and thorough."
According to the bank, the changes now implemented comprise the second step in aligning Glitnir's structure to its needs as an international financial services business. The first step included the creation of shared services and the merger of all market units into one. The second phase includes the establishment of a Corporate Development unit and the split of Corporate and Investment Banking into two units, Corporate Banking and Investment Banking.
"The objective of these changes is to further consolidate the bank's top management group, to obtain a clearer division of roles and activities between the units, and, at the same time, to enhance integration," said Ármannsson.
"The new structure will promote value creation for our customers, through a broader and enhanced product offering which focuses on offering services across industry segments and across the national and organisational borders of our operations in Iceland, Norway, Sweden, Denmark, the UK, Canada and Luxembourg, and our representative office in China, which we plan to towards the end of the year," added Ármannsson.
Glitnir has experienced strong growth in recent years. For the second quarter 2006 the bank posted record profits, with an after-tax result of ISK 11.0 billion, as compared to ISK 9.1 billion in the first quarter. After-tax profits were ISK 20.1 billion in the first six months, as compared to ISK 10.5 billion in the first six months of 2005. Glitnir reported a record high return on equity of 45.5 percent in the first six months of 2006.
ORGANISATIONAL CHANGES IN DETAIL
The bank will be organised in five business units:
* Commercial Banking Iceland * Commercial Banking Norway
* Corporate Banking * Investment Banking * Markets
The three support units of the bank will focus on support and integration of the business units:
* Corporate Development * Shared Services * Finance & Risk Management
The five business units will be managed as follows;
Commercial Banking Iceland, responsible for banking services to private and corporate customers (retail banking, corporate banking, asset-based financing, asset management and private banking) is managed by Haukur Oddsson.
Commercial Banking Norway, including Glitnir's operational banking activities in Norway, which are conducted by BNbank and Glitnir Bank ASA is headed by Frank O. Reite. BNbank is managed by Gunnar Jerven and Glitnir Bank by Jan Rune Hurlen.
Corporate Banking, which is responsible for Glitnir's international operations, global home market customers and leveraged finance is managed by Guðmundur Hjaltason. Gudmundur Hjaltason graduated from University of Iceland in 1988 and is a chartered accountant. He worked as an accountant and a partner of several financial institutions in Iceland, Norway and USA. He has been the CFO of Samskip hf., a leading Icelandic shipping and logistics company, and CEO of Ker hf., a leading Icelandic investment company with an international strategy since 2003.
Investment Banking, which is responsible for the international activities of corporate finance and equity investments in the bank, is managed by Jón Didrik Jónsson.
Markets is overall responsible for the group's capital markets activities, with business units in Oslo, Reykjavik and Stockholm. Market Research in Iceland, Norway and Sweden is part of Glitnir Markets, under management of Frank O. Reite.
"I am proud to introduce Guðmundur Hjaltason to our management board. Guðmundur has a solid record in management, finance and consulting. We look forward to having him on board, with responsibility for Corporate Banking," said Bjarni Ármannsson.
"The new structure will enable a stronger operational focus, help us provide better customer service in our day-to-day operations, and ensure that we maintain focus on strategic development that can ensure our sustained success," said Bjarni Ármannsson.
The three support and integration units in brief:
* Corporate Development will ensure the integration of strategy development, knowledge investments and development, integration of values and communication. The unit will hold the overall responsibility for marketing strategy, business development, corporate communication, talent management, and strategic investments, and will be managed by Jón Didrik Jónsson.
* Shared Services, with the key responsibilities information technology, back-office, facilities management and payroll processing. Shared Services is managed by Finnur Reyr Stefánsson.
* Finance & Risk Management will continue as today, as overall responsible for risk management, credit control, international funding, interbank markets, accounting, planning & reporting, and legal & compliance services, and is managed by Tómas Kristjánsson.
CHANGES TO THE GROUP'S SUPPORT STRUCTURE
Corporate Communication - Glitnir Group To further promote the bank's international corporate communication, Bjørn Richard Johansen will take on the overall responsibility for the bank's Investor Relations, Corporate Communication, Public Relations and Public Affairs. Petur Oskarsson will be responsible for communications in Iceland and serve as spokesperson for the bank in Iceland and Vala Palsdottir will be responsible for Investors Relations.
Talent Management - Glitnir Group Helgi Rúnar Óskarsson will join Glitnir with overall responsibility for the group's Talent Management activities. Helgi Óskarsson has been owner and Managing Director of Dale Carnegie in Iceland and been active in development of leaders and managers in Europe during the last years. He is also member of the board of Dale Carnegie in Germany.
Marketing - Glitnir Group Birna Einarsdottir will take on the position as the group's Marketing Director. Up until now, Birna Einarsdottir has successfully managed Glitnir's marketing in Iceland and was responsible for the bank's rebranding from Íslandsbanki to Glitnir earlier this year.
The three above functions will be part of the new Corporate Development unit.
About Glitnir Glitnir is a leading financial group that offers universal banking and is a leading niche player in three global segments; seafood/food, sustainable energy, and offshore supply vessels. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of banks in Luxembourg (Glitnir Bank Luxembourg S.A) and Norway (BNbank and Glitnir bank, Glitnir Securities and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring, as well as 50.1 percent of Union Gruppen). Glitnir's subsidiary BNbank in Norway recently entered into an agreement to acquire 45 per cent of the shares in Norsk Privatøkonomi ASA. Norsk Privatøkonomi ASA is an independent financial advisory company with 12 branches in key areas of Norway (governmental approval pending in Norway). Glitnir own the leading Swedish brokerage firm Fischer Partners. The bank has a branch in London and in Copenhagen, Denmark. Glitnir has an office in Halifax, Canada. Glitnir plans to open an office in Shanghai, China in 2006. Glitnir is listed on the Icelandic Stock Exchange. Glitnir recently announced record profits, with a return on equity of 45.5 percent for the first half year of 2006 - making second quarter 2006 the best ever in the bank's history. For more information go to: www.glitnirbank.com in English, www.glitnir.is in Icelandic and www.glitnir.no in Norwegian.
For media and press service I; Reference to related press releases: The press release of 24th of August 2006: GLITNIR CONSOLIDATES CAPITAL MARKET AND STRATEGIC SUPPORT UNITS: GLITNIR REORGANISES TO STRENGTHEN CUSTOMER FOCUS AND ALIGNMENT OF ACTIVITIES http://www.glitnir.is/English/AboutGlitnir/News/?ItemId=757
For media and press service II; Reference to our Capital Markets Day in Reykjavik Capital Markets Day - 13 September: The presentations will be webcast on broadcast.glitnir.is If any problem call: Vala Palsdottir, Head of IR, mobile +354-844 49 89
Press contacts: Bjarni Ármannsson, CEO, Glitnir, mobile: +354-844 4002, e-mail: email@example.com
Bjørn Richard Johansen, Managing Director, Corporate Communication, Glitnir, e-mail: firstname.lastname@example.org, mobile +47-47 800 100 For further information go to www.glitnirbank.com
The full press release including Glitnir's new organisational map can be downloaded from the following link:
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