Results of the AGM of Landsbankinn 2021
Landsbankinn's after-tax profit in 2020 was ISK 10.5 billion. Return on equity (ROE) was 4.3% and the cost-income ratio was 47.4%. The Bank made an ISK 12 billion provision for loan impairment, largely in response to the impact of Covid-19. The Bank’s equity at year-end 2020 amounted to ISK 258 billion and its capital ratio was 25.1%.
Helga Björk Eiríksdóttir, Chairman of the Board of Directors, delivered the Board's report to the AGM, discussing Landsbankinn’s focus on supporting customers experiencing difficulties as a result of the Covid-19 pandemic. “We realise that the we will live with the effects of the pandemic going forward into 2022; happily, several individuals and companies are doing well. When conditions allow and the need arises, it is important for us to look to the future with our customers,” said Helga. In light of external circumstances, the Bank’s performance in 2020 was acceptable. The Bank’s long-term target is to achieve a 10% return on equity, having regard for bank tax, and Helga was optimistic about achieving this goal within a couple of years. She mentioned that the Bank will continue to emphasise minimising operating costs and that its operational efficiency has increased steadily. “The results of the past years’ work provides us with a solid momentum going forward into a future no doubt characterised by growing competition from both domestic and international parties. The Bank will meet these challenges with confidence and continue to offer first-rate services, both on digital platforms and with personal service and advice. We are extremely pleased to see satisfaction with our services measure high, with Landsbankinn topping the list of banks in the Icelandic Performance Satisfaction Index in 2020, the second year in a row. We are very proud of this success.”
Sound operation - simplify life for customers
Lilja Björk Einarsdóttir, CEO, spoke of Landsbankinn’s digital advances which have seen the Bank introduce over 40 innovative digital service solutions in the past 3 years. “Our digital solutions all aim to simplify life for customers and around 98% of daily banking by personal and corporate customers is now digital. We leverage digital technology to provide first-rate financial service with a personal touch. That’s Landsbankinn, an ever-smarter bank,” said Lilja. Customer satisfaction comes first at Landsbankinn and it has been a great recognition of the Bank’s strategy and efforts to see satisfaction with service score highly, both with regard to digital solutions and personal service. Emphasis on first-rate service and favourable terms have led to growth in the Bank’s market share, especially in the mortgage market, where market share has increased by from 22% to 26.3% in 2020.
Lilja described the Bank’s 2020 results as reflecting a sound, effective and stable operation. The Bank had been a staunch financial partner to its customers and responded to the needs of customers experiencing income loss as a result of the Covid-19 pandemic. “The Bank’s strong standing, good access to funding, robust market share and sound business relationships all give occasion to view the future in a positive light. In the long term, it is important to support and nurture strong companies that create jobs in Iceland and contribute to a flourishing and dynamic society,” said Lilja.
The following persons were elected regular members of the Board of Directors:
Helga Björk Eiríksdóttir (Chairman)
Elín H. Jónsdóttir
Guðrún Ó. Blöndal
Helgi Friðjón Arnarson
The following persons were elected alternates to the Board of Directors:
Sigurður Jón Björnsson