Landsbankinn hf. - Financial Statement Release

Landsbankinn hf.: Financial Results January - September 2015

Landsbankinn hf. announces a profit of ISK 12 bn in Q3 2015


  -- Landsbankinn's profit in Q3 of 2015 amounted to ISK 12 billion.
  -- A reversal of past years provisions on foreign currency linkaged loans to
     companies accounts for ISK 6.8 bn of after-tax profit in Q3 2015.
  -- The Bank's profit during the first 9 months of 2015 was ISK 24.4 bn.
  -- The cost-income ratio for the first nine months of the year was 45.7%, down
     from 55.3% for the same period last year.
  -- The Bank's equity currently amounts to ISK 252.5 bn and its capital
     adequacy ratio (CAR) was 29.2%, well above the 21.8% FME's requirements.

Steinthór Pálsson, CEO of Landsbankinn: “Landsbankinn's performance during the
first nine months of the year has been successful, better than for the same
period last year. After-tax return on equity was 13.5% and the Bank's financial
strength is excellent. The third quarter results were greatly affected by
Supreme Court rulings Nos. 34/2015 and 35/2015, in cases concerning disputed
foreign currency loans to larger companies . Due to the precedent set by these
rulings, the Bank is reversing provisions from past years, which positively
impacts the Bank's after-tax results by ISK 6.8 bn. 

The Bank's operation continues to improve. The cost-income ratio is favourable,
or 45.7%. Revenues have increased due to increased activities and more
favourable economic conditions. Restrictive measures have also yielded positive
results. The consolidation of Sparisjóður Norðurlands with Landsbankinn is
proceeding smoothly. 

The Bank's financing has strengthened considerably with the issue of bonds on
international financial markets. Deposits and lending have also grown
considerably. Lending growth can be expected to slow down in coming months and
deposits to decrease following approval of the composition agreements of the
failed financial undertakings together with steps taken to start lifting
capital controls. Landsbankinn's balance sheet can be expected to shrink by up
to 10% as a result. The Bank places great emphasis on maintaining a strong
liquidity position and is well prepared for the expected changes. We at
Landsbankinn are optimistic about the future. We have shaped a clear strategy
which will strengthen the Bank's competitive position even further, generating
value for customers and shareholders.” 



For further information:

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

Hanna Kristín Thoroddsen, Investor Relations, ir@landsbankinn.is, tel: +354 410
7328

Attachments:

Landsbankinn Q3 2015 Results Press Release.pdf

Landsbankinn Consolidated Interim Financial Statement 30.09.2015.pdf

Landsbankinn Q3 2015 Results Presentation.pdf