Landsbankinn hf. - Financial Statement Release

Landsbankinn hf.: Financial Results 2015

Landsbankinn's 2015 profit totals ISK 36.5 billion


  -- Profit after tax in 2015 was ISK 36.5 billion.
  -- Return on equity (ROE) was 14.8% compared to 12.5% in 2014.
  -- The cost-income ratio decreased substantially year-on-year while income
     grew strongly and cost decreased.
  -- After-tax income from positive value adjustments to loans was ISK 13.5
     billion compared to ISK 14.9 billion in 2014.
  -- Equity amounted to ISK 264.5 billion and the capital adequacy ratio (CAR)
     was 30.4%.
  -- A proposed dividend of ISK 28.5 billion will be submitted at the Annual
     General Meeting.

Landsbankinn's CEO Steinþór Pálsson:

“2015 has proven to be a highly successful year for Landsbankinn. The Bank's
income has risen significantly over the previous year while at the same time
operating expenses have decreased. Uncertainty and risk have been reduced.
Asset quality has risen and the Bank's funding has been reinforced through
improved access to domestic and foreign credit markets. Liquidity is strong,
and the Bank's equity is among the highest on record, despite large dividends
paid. The integration of the savings banks Sparisjóður Vestmannaeyja and
Sparisjóður Norðurlands was accomplished effectively, further strengthening
Landsbankinn's presence outside the capital region. 

In recent years return on equity has been high and exceeded expectations in
2015. Large, irregular income items have been a major factor here, primarily
income recognised on valuations of loans. In 2015 the impact of these was an
increase in after-tax profit of ISK 13.5 billion and of ISK 14.9 billion in
2014. Profits can be expected to decline considerably in the near term as the
impact of these one-off items on the Bank's operations will ebb as time
progresses. 

Landsbankinn's strategy is to be a trusted financial partner for its customers
and to ensure that customers, owners and society as a whole benefit from the
Bank's work. The Bank emphasises economical and efficient operations, providing
an acceptable return when large, irregular items are excluded. At the same
time, we make it our aim to provide customers with exemplary services on
competitive terms. 

At the beginning of 2015 Landsbankinn adopted a new and ambitious strategy to
2020. Determined effort has been focused on implementing this strategy, the
success of which is assessed regularly. The strategy has already brought
visible results, both for customers and for the bank, and has contributed in no
small part to the bank's highly successful outcome in 2015.” 

For further information contact:

Rúnar Pálmason, Public Relations, pr@landsbankinn.is, tel: +354 410 6263 / 899
3745 

Matthías P. Einarsson, Investor Relations, ir@landsbankinn.is, tel: +354 410
7272

Attachments:

Landsbankinn Annual Results 2015-press-release-EN.pdf

Landsbankinn Annual Results 2015 - Results Presentation.pdf

Landsbankinn Consolidated Financial Statement 2015.pdf