News and announcements

The current account surplus was ISK 22.1bn in Q4 2020.

At the end of February, the EUR/ISK stood at 152.9, compared to 156.1 at the end of January, appreciating during the month. Both turnover and fluctuation was similar as in January. The CBI continued its regular programme of currency sales.

The Icelandic economy contracted by 6.6% between years in 2020.

The CBI released the minutes of the MPC’s meeting on the policy rate decision 3 February. Landsbankinn concluded the sale of a new green euro-denominated bond series. Landsvirkjun published financial statements for 2020.

Today, Landsbankinn concluded the sale of a new green bond series in the amount of EUR 300 million. The bonds bear 0.375% fixed rates and were sold at terms equivalent to an 87 basis points spread above mid-swap market rates. Subscriptions came to just under one billion euro from more than 80 investors.

Landsbankinn has carbon-offset its 2020 activity and achieved CarbonNeutral® company certification.

Landsbankinn’s service outlet in Djúpivogur has been moved to the shopping and service centre at Búland 1, where Kjörbúðin, Íslandspóstur and Vínbúðin are located. The Bank’s opening hours are unchanged and the ATM will be accessible during Kjörbúðin’s opening hours.

Last week, Icelandair Group and the three main commercial banks published financial results for 2020.

The profit of Landsbankinn hf. in 2020 was ISK 10.5 billion after taxes, as compared with ISK 18.2 billion in 2019. After-tax ROE was 4.3% in 2020, as compared with 7.5% in 2019.

Landsbankinn's Annual and ESG Report for 2020 has been published to the Bank's website. The report presents the Bank’s operation and services in 2020 in an accessible manner.

Iceland’s competitive banking market is characterised by a high degree of innovation and a strong tradition of customer service. Landsbankinn, winning the 2020 country award, impressed the judges in both of these domains, and with its relatively strong set of financial results.

The MPC of the CBI held policy rates unchanged. Concurrent with the policy rate decision, the CBI released its quarterly Monetary Bulletin. The CBI sent the prime minister a report on inflation above the upper deviation threshold of the inflation target. The population of Iceland was 368,590 at end of 2020.

January was uneventful on the Icelandic FX interbank market. The EUR was stable within a rather narrow limit, with both turnover and fluctuation declining between months. The CBI continued its regular programme of currency sales.

The Minister of Finance and Economic Affairs made a formal decision to initiate the sale shares in Íslandsbanki. The Treasury issued a eurobond. Landsbankinn issued a bond in SEK. The CPI based on prices in January decreased by 0.06% between months due to seasonal sales, bringing the headline number to 4.3%. The CBI released the results of its market expectations survey.

Landsbankinn was ranked highest by banking customers in the Icelandic Performance Satisfaction Index 2020, for the second year running. The results of the survey were published today.

The housing price index for the capital region increased by 0.6% MoM in December, bringing the YoY increase to 7.7%. Arion Bank released preliminary financial results for Q4.

Landsbankinn has published its first sustainable finance framework. The framework broadens our scope for financing green and social projects, such as switching to renewable energy sources, developing environmentally-friendly infrastructure and sustainable fisheries.

The CBI published a report on the foreign exchange market, exchange rate developments, and international reserves in 2020. The Government Debt Management Agency published its monthly Market Information report. S&P Global Ratings issued a credit rating for Landsbankinn’s covered bonds. Registered unemployment was 12.1% in December, 1.4 pp of that figure due to part-time claims.

S&P Global Ratings has today assigned a credit rating for covered bonds issued by Landsbankinn at A- with stable outlook.

We will reopen Landsbankinn's branches as soon as changes to restrictions on gatherings enter into force on Wednesday, 13 January. Please continue to make appointments to visit us to help us uphold 2-metre distance and ensure that we respect the 20 persons rule.

The CPI based on prices in December increased by 0.20% MoM, bringing the headline number to 3.6%. The CBI released its quarterly Economic Indicators report. The GDM released an annual prospect for 2021, quarterly prospect for Q1 2021, and a Medium-Term Debt Management Strategy for the period 2021-2025. The CBI will continue its regular programme of foreign currency sales in January. Icelandair released traffic data for December.

The Icelandic króna depreciated somewhat against the currencies of main trading countries last year. The euro was 14.9% dearer at year-end 2020 than at the beginning of the year, the US dollar 5.0% and the British pound 8.9% dearer.

Landsbankinn’s new website is designed to simplify life for customers by making finances more accessible and highlighting information and advice.

Landsbankinn has opened two gift card ATMs at the Bank’s branches in Mjóddin and Vesturbæjarútibú at Hagatorg. Both are accessible around the clock.

Due to restrictions on gatherings, banking now primarily takes place over the phone, the Internet and appointments, as traditional service in branches is temporarily suspended. Landsbankinn gift cards can be ordered on landsbankinn.is and picked up at a branch.

Last week's highlights and the week ahead.

Landsbankinn has sold its shareholding in Stoðir hf. in an open sale process. The deadline to submit offers expired at 17:00 on Tuesday, 8 December.

Members of Klassi can now apply for a recreation grant to support participation in recreational activities.

Last week's highlights and the week ahead.

The EUR fell by 3.2% and the USD 5.6% against the ISK in November.