Islandsbanki hf.

Concludes commercial paper offering

Íslandsbanki hf. has today offered 12-month commercial paper to investors.

The nominal amount sold in the 12-month series was 1,440m at a 3.50% simple rate. Total offers received amounted to ISK 1,840 million at rates of 3.40% - 3.50%.

The commercial papers are scheduled to be admitted to trading on Nasdaq Iceland 20 February.

For further information:  Investor Relations – Margrét Lilja Hrafnkelsdóttir, [e-mail].

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_{About Íslandsbanki}

_{Íslandsbanki is a universal bank and a leader in financial services in Iceland. Building on over 140 years of servicing key industries, Íslandsbanki has developed specific expertise in tourism, seafood and energy related industries. Driven by the vision to be #1 for service, Íslandsbanki’s relationship banking business model is propelled by three business divisions that manage and build relationships with the Bank’ s customers. Íslandsbanki has developed a wide range of online services such as the Íslandsbanki and Kass apps, enabling customers to do their banking whenever and wherever. At the same time, the Bank continues to operate the most efficient branch network in Iceland through its strategically located 14 branches. Íslandsbanki has a BBB+/A-2 rating from S&P Global Ratings. www.islandsbanki.is}

_Disclaimer

_{This press release may contain “forward-looking statements,” involving uncertainty and risks that could cause actual results to differ materially from results expressed or implied by the statements. Íslandsbanki hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. It is the investor's responsibility to not place undue reliance on these forward-looking statements which only reflect the date of this press release. Forward-looking statements should not be considered as guarantees or predictions of future events and all forward-looking statements are qualified in their entirety by this cautionary statement.}