2016-10-27 18:05:06 CEST

2016-10-27 18:05:06 CEST


REGULATED INFORMATION

Islandic English
Landsbankinn hf. - Quarterly report

Landsbankinn hf. : Landsbankinn reports profit of ISK 16.4 billion in the first 9 months of 2016 


Landsbankinn's  after-tax outcome for the first nine months of 2016 was positive
in  the amount of ISK 16.4 billion, compared to an after-tax profit of ISK 24.4
billion for the same period in 2015.

Net  interest income amounted  to ISK 26.2 billion,  an increase of 4.7% between
periods,  while fees  and commissions  were ISK  5.9 billion, a  YoY increase of
15%. Loan revaluations amounted to ISK 4.4 billion, compared to ISK 12.3 billion
during  this same period in Q1 2015. Other operating income amounted to ISK 4.7
billion,  compared  to  ISK  8.4 billion  a  year  earlier, with the decline due
primarily  to lower profit on equities. ROE  for the period was 8.5% compared to
13.5% during the same period of 2015.

Total  9M operating income amounted  to ISK 41.2 billion,  compared to ISK 50.9
billion for the same period in 2015. Operating expenses decreased by 0.4% YoY to
ISK  17.6 billion,  of  which  salary  expense  was  ISK  10.4 billion and other
operating expenses ISK 7.2 billion. Landsbankinn's total assets as of the end of
September  were around ISK  1,134 billion, compared to  ISK 1,176 billion a year
earlier;  the bank's  balance sheet  has therefore  contracted by just under 4%
during  the past 12 months. This year  Landsbankinn has paid ISK 28.5 billion in
dividends  in  two  payments,  in  April  and  September. On 15 September 2016,
Landsbankinn  announced  the  bank  would  offer  to  purchase  own  shares from
shareholders  in  accordance  with  a  buy-back programme during three specified
repurchase  periods. During  the first  buy-back period  the bank  acquired 120
million  shares, or the  equivalent of 0.5% of  its issued share  capital, for a
purchase price of ISK 1.2 billion. Buy-backs under the programme can amount to a
maximum  of 480 million shares, or the equivalent of 2% of issued share capital.
At the end of September the bank's equity was ISK 251.1 billion  and its capital
adequacy ratio 29.1%, compared to 29.2% a year earlier.

Landsbankinn's  CEO Steinþór  Pálsson: "Landsbankinn  continues to reinforce its
position  as Iceland's leading financial undertaking: its market share this year
is  the highest  ever. The  quality of  the bank's  assets has increased and its
funding terms have improved, thanks to a successful bond issue abroad this year.
Considerable  fluctuations still remain in one-off items, i.e. loan revaluations
and  equities. If these  items are excluded  the bank's performance has improved
over that of the previous year, as other income has grown due to higher business
volume while at the same time we have managed to reduce operating costs.

 The bank has also paid substantial dividends to its owners in 2016, higher than
ever before. A new upgrade of Landsbankinn's Standard & Poor's rating in October
attests to the bank's strong position. Landsbankinn's results for the first nine
months  of this year are very positive and exceed expectations. It is gratifying
to see that customers find it to their advantage to direct their business to the
bank  to an increasing extent, and that  investors' confidence in the bank is on
the rise."



Investor call: On 28 October at 10:00 local time, the bank will host an investor
call  in English covering  the main Q3  results. Please register  to the call by
emailing ir@landsbankinn.is.



For further information contact:

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

Hanna    Kristín    Thoroddsen, Investor   Relations, ir@landsbankinn.is,   tel:
+354 410 7272


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