Lands­bankinn's res­ults for the first nine months of 2019

In the first nine months of 2019, Landsbankinn's after-tax profit was ISK 14.4 bn as compared with ISK 15.4 bn for the same period in 2018. Return on equity (ROE) for the period was 7.9% on an annualised basis as compared to 8.8% during the same period of 2018.
24 October 2019

In the first nine months of 2019, Landsbankinn's after-tax profit was ISK 14.4 bn as compared with ISK 15.4 bn for the same period in 2018. Return on equity (ROE) for the period was 7.9% on an annualised basis as compared to 8.8% during the same period of 2018.

Net interest income was ISK 30.1 billion, compared to ISK 29.8 billion for the same period last year. Net commission income amounted to ISK 6.1 bn, increasing by 5% from the same period the previous year. Negative value changes amounted to ISK 3.4 bn in the period, as compared with positive value changes of ISK 1.6 bn in the same period of 2018. At the end of September 2019, the default rate was 0.8% as compared with 0.5% for the same period in 2018.

The Bank’s operating income in the first nine months of 2019 was ISK 39.3 bn as compared to ISK 41.1 bn for the same period the previous year. Other operating income amounted to ISK 6.5 bn as compared with ISK 3.8 bn in the same period the previous year, which is a 72% increase.

The interest spread on assets and liabilities was 2.4% in the first nine months of 2019, a change from 2.7% in the same period of 2018.

The Group’s operating expenses in the first nine months of 2019 totalled ISK 17.7 billion, remaining more or less unchanged between periods. Labour cost accounts for ISK 10.7 bn of that figure as compared with ISK 10.8 bn for the same period in 2018, which is a 0.9% decrease. Other operating expenses amounted to ISK 7 billion, remaining unchanged between years.

The cost-income ratio for the first nine months of the year was 41.4%, as compared to 45.0% for the same period last year.

Lending increased by 6.8% since the beginning of the year, or by just over ISK 72.3 bn. Customer deposits with Landsbankinn increased by 1.5% this year to date, or by ISK 10.7 billion.

Landsbankinn’s equity amounted to ISK 243.9 bn as at 30 September this year and its CAR was 23.6%.

Consolidated Financial Statements 9M 2019

9M 2019 Results Presentation

Press Release

Fact book

Lilja Björk Einarsdóttir, CEO of Landsbankinn:

“Landsbankinn’s nine-month results reflect its stable and sound operation. Costs continue to decrease while revenue grows. The cost-income ratio for the period was 41.4%, lower than for the same period last year. Surveys show that Landsbankinn’s customers are increasingly more satisfied with the service and that trust in the Bank has grown. We intend to continue on this path; to offer top quality and secure financial service while maintaining a focus on cost-efficiency and emphasis on the integration of social responsibility in the Bank’s strategy and operation. The results also reflect the contracting economy. The corporate operating environment is now more challenging and leads to some impairment.

Landsbankinn has lowered interest rates lately. This year, non-indexed variable interest rates on housing loans have been lowered by 0.8 percentage points – non-indexed housing loans are the most common form of financing for individuals. Around 340 families and individuals financed their first housing purchase with the Bank this quarter, overwhelmingly with non-indexed loans. When interest rates trend downwards, deposit rates unavoidably also fall, with common deposit rates being lowered by 0.7 percentage points. In this manner, we accommodate customers who have entrusted us with their savings, as well as customers who have taken out loans. Landsbankinn’s interest rate decisions are based on more factors than Central Bank rates, such as market rates and terms on the Bank’s other funding sources. The Bank has generally reacted quickly to interest rate decreases and offers very competitive terms on the market.

On 2 October, the Bank paid the latter of two scheduled dividend payments for 2018 to shareholders. This latter payment amounted to ISK 4,961 million; together, both dividend payments for 2018 amounted to ISK 9.9 billion. This brings Landsbankinn’s total dividend payments since 2013 to around ISK 142 billion.

Landsbankinn’s employees have recently featured prominently in public debate on changes to banking services and related challenges. The Bank’s experts have spoken and written about open banking and means and ways of increasing cyber security. We warmly appreciate that customers have made a point of complimenting the Bank’s employees on their contribution and swift action to prevent cybercrime. This shows that numerous experts are working behind the scene at the Bank to ensure stable and safe operations. Landsbankinn’s employees are highly motivated and, as always, we emphasise offering customer exceptional services.”

Key figures from the profit and loss account for Q3 2019


  • Landsbankinn's profit for Q3 of 2019 was ISK 3.2 bn, as compared with ISK 3.8 bn for the same quarter of 2018.
  • Return on equity (ROE) after taxes was 5.4% as compared to an ROE of 6.5% for the same period of 2018.
  • Net interest income was ISK 9.6 bn, as compared to ISK 10.4 bn in same quarter of 2018.
  • Revaluations on loans were negative by ISK 1.1 billion in Q3 2019, compared to positive changes of ISK 89 million in the same quarter of 2018.
  • Net commission income was ISK 2.0 bn as compared to ISK 1.9 bn in Q3 of 2018.
  • The interest margin on assets and liabilities was 2.3% as compared with 2.7% in Q3 of 2018.
  • Wages and related expenses amounted to ISK 3.3 billion, remaining unchanged between periods.
  • Operating costs less wages and related expenses decreased by 7.9% compared to the same period the previous year.
  • The cost-income ratio for Q3 of 2019 was 43.9%, as compared to 45.9% for the same time last year.
  • Full-time equivalent positions at Landsbankinn were 903 as at 30 September 2019, down from 948 the same time the previous year.

Balance Sheet:

  • Landsbankinn's equity amounted to ISK 243.9 bn at the end of September and has increased by 1.8% since the beginning of the year.
  • The Bank's total capital ratio on 30 September 2019 was 23.6%, down from 24.9% at year-end 2018. This is well above the 20.4% minimum requirement determined by the Financial Supervisory Authority.
  • Landsbankinn’s total assets were ISK 1,415 bn at the end of September 2019.
  • Customer deposits amounted to ISK 703.8 bn at the end of September 2019 as compared to ISK 693 bn at year-end 2018.
  • Lending to customers increased by 6.8% in the first nine months of the year, or by ISK 72 bn. Lending to corporates grew by ISK 30 bn, while loans to retail customers increased by ISK 42 bn.
  • The Bank closely monitors and manages its overall liquidity risk, in both FX and ISK. The Bank's liquidity coverage ratio (LCR) was 186% at the end of September 2019.
  • Total defaults by companies and households were 0.8% at the end of September 2019, which is the same ratio as at year-end 2018.

Main results (Amounts in ISKm)

9M 2019

9M 2018

Q3 2019

Q3 2018

After-tax profit





ROE after-taxes





Interest spread on assets and liabilities*





Cost-income ratio**









Total assets





Loans to customers





Customer deposits










Total capital ratio 





Net stable funding ratio on foreign currency





Aggregate liquidity coverage





Foreign currency LCR





Loans in arrears (>90 days)





Full-time equiv. positions





* Interest margin on assets and liabilities = (interest revenue / avg. total assets) – (interest expenses / avg. total liabilities)

** Cost-income ratio = Total operating expenses / (Net operating revenue – value change of lending)

Teleconference to present results

Landsbankinn's results for the first nine months of 2019 will be presented at a teleconference for market actors at 10:00, Friday 25 October. The meeting will be held in English. Please register for participation by emailing

You may also be interested in
Höfuðstöðvar Landsbankans í Austurstræti
22 Sept. 2023
Last day in Austurstræti
Today is the last day the Landsbankinn branch in Austurstræti 11 is open and the doors close at 16:00. All activities move to the Bank’s new branch in Reykjastræti 6, which is already open.
21 Sept. 2023
Reception of Danish bank notes
Customers can buy Danish bank notes in Landsbankinn branches and ATMs throughout Iceland. We would like to advise customers that the Bank no longer accepts DKK 1,000 and 500 bills, nor any Faroe Islands króna bills. There are no changes to transactions in DKK 200, 100 and 50 bills. Cash transactions comply with the Act on Actions to Combat Money Laundering and Terrorist Financing. Tighter rules in Denmark limit the reception of bank notes by foreign banks and Landsbankinn is as a result no longer able to accept DKK 1,000 and 500 bills.
21 Sept. 2023
Landsbankinn Corporate Finance co-ordinated uplisting of Amaroq to the Nasdaq Iceland Main
Amaroq Minerals, under the ticker AMRQ, has now been listed on the Main Market of Nasdaq Iceland. In addition to listing on the Nasdaq Iceland Main Market, Amaroq’s shares are listed on stock exchanges in Canada (TSX-V) and London (AIM). Alongside uplisting to the Main Market of Nasdaq Iceland, Amaroq has been delisted from First North Iceland. Amaroq Minerals is the first listed mining company in Iceland. The company holds a significant licence portfolio in Greenland and is engaged in the identification, acquisition, exploration and development of gold properties and other strategic mineral assets, pivotal to the energy transition. Landsbankinn Corporate Finance co-ordinated the listing process. We congratulate the staff and shareholders of Amaroq on the successful transfer of the company’s listing.
Tölva á vinnuborði
14 Sept. 2023
Updates to the RSA app - new name and icon
We’d like to call your attention to changes to the RSA SecurID app used for secure login and payments in corporate online banking.
13 Sept. 2023
Branch opening in Reykjastræti
The branch at our new headquarters in Reykjastræti 6 opens today. Cashier services are available from 10:00-16:00 and ATMs and other self-service equipment is accessible around the clock.
Sunna Ósk Friðbertsdóttir
12 Sept. 2023
Sunna Ósk Friðbertsdóttir new Landsbankinn Compliance Officer
Sunna Ósk Friðbertsdóttir has taken up the position of Compliance Officer at Landsbankinn. Sunna completed a BA degree in law from Reykjavík University in 2008 and an ML degree from the same institution in 2010. She is a licensed securities broker and a recognised District Court Attorney. Sunna came to work for Landsbankinn as a lawyer in 2012 and has had various responsibilities, both in implementing legal requirements and related to daily operations. She has worked in Compliance since 2017 and been Deputy Compliance Officer since 2022. Compliance supervises and monitors Landsbankinn’s compliance with internal and external rules and advises and educates on legal and regulatory demands relevant to the Bank’s operation.
New temp image
31 August 2023
Landsbankinn changes interest rates
In light of the recent interest rate decision of the Central Bank of Iceland, the following changes will be made to Landsbankinn’s interest rates. Interest rate changes also have regard for market rates and other funding terms of Landsbankinn.
Screenshot of fraudulent message
31 August 2023
Beware of fake text messages - do not open the link
This is a warning concerning a fake website made to look like that of Auðkenni and which includes a fraudulent connection to Landsbankinn.
23 August 2023
Shorter opening hours in 7 branches - service hours remain unchanged
On 13 September, the opening hours of seven branches will be shortened by three hours and will as a result be 12:00-15:00. While general opening hours will be shorter, customers can still make appointments to visit these branches between 10:00-16:00 and book remote meetings until 18:00, meaning that actual service hours remain unchanged. ATMs are accessible around the clock in all these locations.
18 August 2023
Cyclical– art exhibition opens in Austurstræti 11 on Reykjavík Culture Night
A new exhibition of art from Landsbankinn's collection will be opened in the event of Reykjavík Culture Night in the Bank’s branch at Austurstræti 11. The exhibition is titled Cyclical and is curated by Daría Sól Andrews.

By clicking "Allow All", you agree to the use of cookies to enhance website functionality, analyse website usage and assist with marketing.

More on cookies