BEST BANK
Kaupthing Bank
BEST DEBT HOUSE
Deutsche Bank
BEST EQUITY HOUSE
Kaupthing Bank
BEST M&A HOUSE
Kaupthing Bank
Kaupthing Bank continues to grow at an amazing pace without sacrificing profitability – return on equity reached 22.6% in 2004 and 33% in the first quarter of 2005.
The bank now has a market capitalization of €4.3 billion – more than double its nearest Icelandic rival, National Bank of Iceland.
In the second quarter of 2004, Kaupthing made its most significant acquisition to date: leading Danish corporate bank FIH-Erhvervsbank, which it bought for €1.3 billion. Moody’s has upgraded Kaupthing twice in less than a year and it is now rated €1 for long-term debt.
Deutsche Bank controls more than a quarter of the primary debt market and almost double that of its nearest rival, Credit Suisse First Boston.
Deutsche also distinguished itself as sole bookrunner on the biggest deal of the year, the issue of new non-callable 20-, 30- and 40-year inflation-linked bonds in Icelandic krónur as part of an exchange offer for €4.5 billion of seven outstanding callable and non-callable bonds.
Deutsche Bank has not been quiet elsewhere – it also led several deals for Iceland’s most rapidly growing bank, Kaupthing, during the year.
Kaupthing Bank retains its title as best equity house in Iceland. It has held the top position in equity market share both in total turnover and on-exchange – for the full year 2004 market share was 35.5% and it rose to 40% in the first quarter of this year.
It is the exclusive market maker for nine of Iceland’s top 15 companies. With most of the primary issuance from Iceland being for either Kaupthing or Íslandsbanki, the primary league table is necessarily skewed. Nevertheless, the bank has been active in block trades and delistings.
With Kaupthing Bank the most active player in M&A – often on its own account, as with the €1.3 billion acquisition of Denmark’s FIH Erhvervsbank – it is perhaps no surprise that it retains the best M&A house award.
The bank has a market share of 49.13% – almost double that of Citigroup, its nearest rival, on 28.46%. It is also active in the corporate market and was sole arranger and adviser on the $421 million acquisition of French food producer Labeyrie
