Landsbankinn hf. - Company Announcement

Merger of Landsbankinn and Sparisjóður Norðurlands approved

The merger of Landsbankinn and Sparisjóður Norðurlands has now been approved by
regulators and will formally take effect as of today, 4 September 2015. At its
meeting earlier today, the Board of Directors of Landsbankinn agreed to the
merger on behalf of the Bank. A meeting of the guarantee capital owners of the
savings bank had previously approved the merger. 

The merged company will operate under Landsbankinn's name, all employees of the
savings bank will be Landsbankinn's employees, all assets and obligations of
the savings bank will be consolidated with those of Landsbankinn and
Landsbankinn takes over operation of all of the savings bank's service points. 

Sparisjóður Norðurlands operates service points and branches in Dalvík,
Raufarhöfn, Þórshöfn, Kópasker, Suðureyri and Bolungarvík. No changes will be
made to services to customers in the near term, with branches and service
points open as usual, account numbers remaining unchanged, payment cards valid
and unaltered access to online banking. Customers will at a later date receive
information about the changes the merger occasions and Landsbankinn's employees
will endeavour to keep the effect on customers at a minimum. 

Customers are advised to contact their local branch or Landsbankinn's Customer
Service Centre (+354 410 4000, info@landsbankinn.is) or look at answers to
frequently asked questions on the Bank's website. 

According to the agreement in place, guarantee capital holders in the savings
bank will be compensated with shares in Landsbankinn. Such remuneration amounts
to a total of ISK 594 million. 

Sparisjóður Norðurlands was created with the merger of Sparisjóður Svarfdæla
and Sparisjóður Þórshafnar og nágrennis on 4 July 2013, with Sparisjóður
Bolungarvíkur consolidated into the savings bank on 30 June 2014. Guarantee
capital in the savings bank amounted to ISK 1,008,791 and guarantee capital
owners numbered 361. The largest owners were the National Treasury of Iceland
(79.2%), the Savings Banks' Insurance Fund (14.9%), the Central Bank of
Iceland's Asset Division (1.7%) and the ÍV UCITS Management Company (1.7%).
Other parties owned less than 1%. 

On 9 June, uncertainties regarding the savings bank's future prompted its Board
of Directors to approach Landsbankinn to gauge interest in the merger. The
merger was contingent upon approval by the Financial Supervisory Authority,
Iceland (FME), and the Icelandic Competition Authority. These entities have now
approved the merger. 



For further information contact: Kristján Kristjánsson, pr@landsbankinn.is,
+354 410 4011/+354 899 9352.