Landsbankinn hf.: Financial results of Landsbankinn in the first half of 2024
18 July 2024 - 4:13PM
UK Regulatory
Landsbankinn hf.: Financial results of Landsbankinn in the first
half of 2024
- Landsbankinn’s profit in the first half of 2024 amounted to ISK
16.1 billion, ISK 9.0 billion thereof in the second quarter.
- Return on equity (ROE) in the period was 10.5%, compared with
10.3% for the same period the previous year.
- The net interest margin was 2.9% and the net interest margin of
domestic households was 2% during the period.
- Net interest income amounted to ISK 29.1 billion and net fee
and commission income was ISK 5.4 billion.
- Net impairments were negative by ISK 3.5 billion, with the
major part attributable to uncertainty about the financial impact
of natural disaster on the Reykjanes peninsula.
- The cost-income ratio was 33.1%, compared with 36.1% in the
same period of 2023.
- The total capital ratio was 24.4% at the end of the period. The
total capital requirement of the Financial Supervisory Authority of
the Central Bank of Iceland is 20.4%
- An agreement providing for Landsbankinn’s purchase of TM
tryggingar hf. from Kvika Bank was signed 30 May 2024.
Lilja Björk Einarsdóttir, CEO of Landsbankinn:
“Landsbankinn shows strong results in the first six months of
the year, achieving all its financial targets. Profitability is in
line with objectives and the cost-income ratio is almost as low as
it gets. Interest income is robust and we have achieved good
returns on the Bank’s liquid assets.
The most notable event of the last quarter is the signing of an
agreement providing for the Bank’s purchase of TM. This strategic
acquisition aims to broaden the service base for customers,
diversify income streams and increase the Bank’s value for
shareholders. The purchase is pending approval by the Financial
Supervisory Authority of the Central Bank of Iceland and the
Icelandic Competition Authority.
Fee and commission income is slightly down following
exceptionally good results in the same period last year, yet on an
upward trajectory. Dynamic development and new features in the app,
alongside the addition of new corporate customers result in growing
revenue, both through merchant acquiring and other services. We are
proud of the impressive results achieved in introducing new
services in our app. We have also enhanced security by introducing
a new emergency closure feature that allows customers to suspend
access to both payment cards, the app and online banking with the
flick of a switch, and only reversable by contacting the Bank.
We are focused on simplifying life for our customers. Our
success is attested to by strong results, efficient operation and
good understanding of our complex operating environment, regularly
reviewed by regulators. We have added to our income streams and
offer very broad banking services that most customers take
advantage of daily or multiple times each day. I am happy to see
how well the Bank’s team responds to different challenges and
changes in our operating environment. We all of us keep our focus
firmly on the important point, ensuring customer satisfaction with
convenient and competent service - this is the point that will
ensure future success.”
Landsbankinn´s financial calendar
- Q3 2024 results 23 October 2024
- Annual results 2024 30 January 2025
For further information contact:
Public Relations, pr@landsbankinn.is
Investor
Relations, ir@landsbankinn.is
- Landsbankinn_resultspresentation_30.06.2024
- Landsbankinn_press_release_30.06.2024
-
Landsbankinn_condensensed_consolidated_interim_financial_statement_30.06.2024