Published: 2019-07-25 18:02:17 CEST
Landsbankinn hf.
Half Year financial report

Landsbankinn hf.: Financial results of Landsbankinn in H1 of 2019

Landsbankinn's performance was positive by ISK 11.1 billion after taxes during the first half of 2019, compared with an after-tax profit of ISK 11.6 billion during the same period in 2018. Return on equity (ROE) during the period was 9.1% on an annualised basis, compared to 9.9% in the same period of 2018. Salaries and related expenses decreased by 2% between periods.

Net interest income amounted to ISK 20.5 billion, an increase of 5% between periods. Net fees and commissions amounted to ISK 4.1 billion, compared to ISK 3.9 billion for the same period last year. Impairment on loans amounted to ISK 2.4 billion during the period, compared with positive net valuations adjustments of ISK 1.7 billion over the same period the year before. The default ratio for H1 2019 was 0.9% compared to 0.6% in the same period of 2018.

The Bank's operating income for the first half of the year amounted to ISK 27.9 billion, compared to ISK 29.0 billion for the same period the year before. Other income from operations were ISK 5.7 billion, compared to ISK 3.9 billion for the same period last year.

The Bank’s net interest margin for the first half of 2019 was 2.4%, while for the same period of 2018 it was 2.7%.

The Bank's operating expenses amounted to ISK 12.2 billion in the first half of 2019, remaining unchanged from the first half of 2018. Of this, wage expenses amounted to ISK 7.4 billion, compared to ISK 7.5 billion for the same period in 2018. Other operating expenses were ISK 4.9 billion, compared to ISK 4.6 billion for the same period last year.

In H1 2019, the cost-income ratio was 40.4%, whereas for the same period in 2018 this was 44.5%.

Lending to individuals and corporates increased by 6.2% from the beginning of the year, or by ISK 66 billion. Since the beginning of 2019, deposits have increased by almost ISK 5 billion.

As of 30 June this year, Landsbankinn's equity was ISK 240.6 billion and its total capital ratio was 23.7%.

Lilja Björk Einarsdóttir, CEO of Landsbankinn:

 “Landsbankinn has delivered good results for the first half of this year. The Bank's revenues were higher and costs lower than expected, demonstrating clearly that its core business is sound and yields a good profit. Cost restraint in the Bank's operations has played a major role in ensuring that the Bank's operating costs remain unchanged from those of the previous year. Efficiency has also increased through the use of digital technology and innovations in services have been well received by our customers. The Bank's cost-income ratio in the first half of the year was just over 40%, which is lower than for the same period last year and lower than the Bank's target.

The steady progress in our activities reflects our determination to offer good and competitive services. Landsbankinn was the first Icelandic bank to offer mobile phone payment services for all mobile phone users. We were also the first bank to offer access to an A2A payment solution, an important step towards an open banking system.

While it is undeniably disappointing to learn that the rating agency S&P Global Ratings now views the Bank's outlook as negative, this is to some extent understandable given the current Icelandic economic situation and competitive environment to which S&P refers. On the other hand, we can point out that both S&P and Euromoney regard Landsbankinn as having achieved the best operating results of Icelandic banks recently.”

Teleconference to present results

Landsbankinn's results for the first half of 2019 will be presented at a teleconference for market actors at 10:00 am on Friday, 26 July. The presentation meeting will be held in English. Registration is required, by sending an email to

For further information, please contact:
Hanna K. Thoroddsen, Investor Relations,
Rúnar Pálmason, Public Relations,