Landsbankinn hf.

Correction: Financial results of Landsbankinn for the first three months of 2024 - Published 2024-05-02 14:25:23 CEST

Correction: Information about the CBI's new reserve requirement has been updated in the CEO´s quote.

• Landsbankinn's net profit in the first three months of 2024 was ISK 7.2 billion.
• Return on equity (ROE) in the period was 9.3%, compared with 11.1% for the same period the previous year.
• The net interest margin was 2.9%. The net interest margin of domestic households was 2% and remains stable.
• Net interest income amounted to ISK 14.4 billion and net fee and commission income was ISK 2.7 billion.
• Net impairments were negative by ISK 2.7 billion and include an ISK 2.0 billion collective allowance against uncertainty related to natural disaster on the Reykjanes peninsula.
• The cost/income ratio was 33.6%, compared with 33.3% in the first quarter of 2023.
• The total capital ratio was 24.9% at the end of the period. The total capital requirement of the Financial Supervisory Authority of the Central Bank of Iceland is 20.7%.
• In March, Landsbankinn finalised the sale of green bonds in the amount of EUR 300 million, with subscriptions coming in at more than six times the size of the issuance.
• Also in March, the Bank issued two Tier 2 bonds, one non-indexed series in the amount of ISK 3 billion and one inflation-linked series in the amount of ISK 12 billion.
• The Bank’s AGM, held on 19 April 2024, agreed to pay a dividend to shareholders in the amount of ISK 16.5 billion, or ISK 0.70 per share, for the operating year 2023. The dividend is equivalent to around 50% of the Group’s 2023 profit. As a result, total dividend paid by Landsbankinn in 2013-2024 will amount to ISK 191.7 billion.
• In January, for the fifth year in a row, customers in the banking market are most satisfied with Landsbankinn’s services, according to the Icelandic Performance Satisfaction Index 2023.
• In early April, S&P Global Ratings upgraded the Bank’s credit rating to BBB+/A-2 with stable outlook.

 

Lilja Björk Einarsdóttir, CEO of Landsbankinn:

“It is quite a milestone that Landsbankinn’s balance sheet has now exceeded ISK 2,000 billion, doubling in size from its initial balance sheet in 2008. The balance sheet has grown surely and steadily, and in the first quarter of this year, the increase amounts to just under ISK 72 billion. A growing balance sheet enables us to provide even better support for Icelandic industry and society. Strong lending activity is a core function of the Bank’s operation. There has been moderate growth in housing mortgages and more refinancing activity. Corporate lending grew steadily to reach an increase of ISK 30 billion in the quarter.