Íslandsbanki hf. - Annual Financial Report

Islandsbanki hf. : 2016 Annual Report and Pillar 3 Report

Íslandsbanki has now published its 2016 Annual Report and Pillar 3 Report. The
reports contain interesting information on the Bank's activities and policies.

Íslandsbanki Pillar 3 Report & Annual Report 2016

Annual Report 2016

The Annual Report gives a comprehensive overview of the Bank's operations and
how Íslandsbanki has clearly distinguished itself from its competitors in terms
of strategy, innovation and performance.

Íslandsbanki made significant strides in its operations in 2016 and was, among
other things, named the best bank in Iceland by both The Banker and Euromoney.
The Bank's customers are also the most satisfied in Iceland, according to the
Icelandic Customer Satisfaction Index - an honour the Bank has received for four
years in a row.

In 2016, Íslandsbanki rolled out progressive digital solutions enabling its
customers to simplify their banking activities. Among them are the mobile
payment app Kass, recently selected as the best app in Iceland, and the online
credit assessment function, which expedites the mortgage application process.

The report also highlights a few examples of how the Bank's vision to be #1 for
service and its strategic themes: Multiply, Simplify and Unify colour all the
Bank's activities:

  * Multiply - to do more business with the three key groups we serve: people,
    companies and institutional investors
  * Simplify - to streamline our customers' experience through digitisation and
    enhanced operational efficiency
  * Unify - to have a positive impact on the community and collaborate with
    other companies on projects for the good of society at large

Pillar 3 Report 2016

The Pillar 3 Report provides information to market participants and other
stakeholders that facilitate a better understanding of the Bank's risk profile,
capital and liquidity adequacy. The report shows that at year-end 2016 the Bank
was in compliance with internal and external risk limits and that its liquidity
and equity positions remain strong.

 A dynamic team of Bank employees participated in preparing the reports, which
we hope will provide both our customers and stakeholders with a good overview of
the Bank's operations.

Both the Annual Report and the Pillar 3 are enclosed as attachments, but all of
the financial information can be found on the Investor Relations page on the
Bank's website: www.islandsbanki.is/ir.



For further information:

  * Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is, tel
    +354 440 3187.
  * Media Relations - Edda Hermannsdottir, edda.hermannsdottir@islandsbanki.is
    and tel: +354 440 4005.


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Attachments:

ÍSB Pillar 3 Report 2016 - Excel graphs and tables.xlsx

ÍSB Annual Report 2016.pdf

ÍSB Pillar 3 Report 2016.pdf