Lilja Björk Einarsdóttir, CEO of Landsbankinn: “The Bank’s performance in the first three months of the year was solid. Profit amounted to ISK 7.9 billion and return on equity was 10.0%, compared with 9.3% in the same period last year.
This is the first financial statement since the Bank took over operation of TM and the collaboration is off to a good start. In the first few weeks since the acquisition, significant progress has been made, including the merger of three of the Bank’s and TM’s branches, and the completion of a complex IT systems transfer. We are experiencing goodwill and interest from customers regarding these changes and will be introducing various innovations in insurance services in the near future. The joint operation of an insurance company and a bank is a good fit and offers opportunities for better and more diverse financial services. TM is included in the Bank’s financial reporting from the beginning of March, so this financial statement reflects one month of its operations. The insurance segment performed well in March, but a decline in investment assets due to volatility in capital markets led to an overall negative result.
In Akureyri, Landsbankinn and TM have come together in new and impressive facilities at Hofsbót, in the town centre. Landsbankinn offers interconnected services across the country. In addition to an excellent app and online banking platform, customers can receive service from branch staff at 34 locations nationwide, through the Bank’s strong service centre and a chatbot capable of resolving various queries on landsbankinn.is. We see strong customer satisfaction with the Bank’s services, which we attribute directly to powerful and integrated service, fair terms and outstanding employees.
On Monday, it was announced that international rating agency S&P had upgraded the Bank’s credit rating to the A category, from BBB+ to A-. We are thrilled with this change, as we have taken strategic steps to improve the Bank’s credit rating by improving its capital structure. In recent years, requirements for systemically important banks regarding capital structure have increased and S&P’s rating is a significant recognition of our efforts. The higher credit rating reflects the Bank’s solid access to markets, sound operation and strong capital position.
Market volatility and global uncertainty impacted the quarter in various ways. Lending growth has slowed, both among individuals and corporates, some of which are holding off on investments and other decisions. Under such circumstances, it is reassuring to note that the overall financial position of both corporates and individuals remains strong. Uncertainty often brings opportunities as well and, during the quarter, Landsbréf completed the financing of a new ISK 15 billion private equity fund, Horn V, following the strong performance of the previous four Horn funds.
Landsbankinn continues to offer highly competitive interest rates on both deposits and loans. The Bank’s solid operation allows us to maintain a 2.1% interest margin for households while still delivering satisfactory profitability and consistent dividends to shareholders. The Bank has the most satisfied customers among the domestic commercial banks. The Bank’s performance is sound and our team is dedicated to providing customers with excellent service. Despite a challenging external environment, the Bank is in a strong position to support Icelandic society.”
Landsbankinn's financial calendar
Q2 2025 17 July 2025Q3 2025 23 October 2025Annual results 2025 29 January 2026
For further information contact:
Public Relations, [email protected]
Investor Relations, [email protected]
Attachments
Landsbankinn_press_release_Q1 2025 Landsbankinn_results_presentation_Q1_2025 Landsbankinn_consolidated_financial_statements_Q1_2025