Landsbankinn's Impressive Financial Performance in 2025
Landsbankinn Financial Overview for 2025
Landsbankinn has reported a remarkable after-tax profit of ISK 29.5 billion for the first nine months of 2025, with ISK 11.1 billion earned in the third quarter alone. This considerable growth reflects the bank's resilience and effective strategies amid the ever-changing economic landscape.
Building Strong Financial Foundations
The return on equity (ROE) stood at 12.2%, a healthy increase from 11.7% during the same timeframe last year. This upward trend in ROE signifies the bank's commitment to enhancing shareholder value while maintaining a robust financial posture.
Key Financial Metrics
In terms of net interest income, Landsbankinn reported ISK 49.4 billion, coupled with net fee and commission income amounting to ISK 9.2 billion. These figures highlight the bank’s ability to generate consistent income streams, enabling it to invest in growth and enhance customer services.
Insurance Performance
Performance from insurance contracts through TM yielded ISK 1.5 billion between 28 February and 30 September 2025, with ISK 528 million reported in the third quarter. With a combined ratio of 88.7%, TM has demonstrated efficient operations and risk management in its insurance offerings.
Create Sustainable Growth
The bank's cost-income ratio was 33.2%, slightly increased from 32.3% in the previous year. This indicates that while operational efficiency is essential, Landsbankinn is also focusing on sustainable growth alongside profitability.
Capital Requirements
At the end of September, Landsbankinn’s total capital ratio stood at 24.0%, surpassing the requirements set by the Financial Supervisory Authority (FSA) of the Central Bank of Iceland, which is at 20.4%. This stable capital base provides a strong buffer against potential economic stresses.
Shareholder Returns
In terms of shareholder returns, Landsbankinn distributed a total of ISK 18,891 million in dividends for 2025, with the latest installment paid on 17 September. This consistent return on investment reflects the bank's commitment to rewarding its shareholders.
Engaging the Younger Generation
Notably, the number of young customers aged 18-24 trading in Landsbréf funds increased by an impressive 45% from the previous year. Young individuals are also showing a growing tendency to invest their supplementary pension savings with the bank, reflecting a positive trend toward financial literacy and planning among younger demographics.
Strategic Real Estate Decisions
In a strategic move to optimize operational efficiency, Landsbankinn sold its properties at Austurstræti 11 and Hafnarstræti 10, 12, and 14 for ISK 2.85 billion towards the end of July. This sale is part of the bank’s ongoing efforts to reduce its physical footprint by approximately 40% over recent years.
Message from the CEO
Lilja Björk Einarsdóttir, CEO of Landsbankinn, stated, “The performance in the first nine months of the year is encouraging, and it enhances our ability to address challenges effectively. With a growing focus on sustainability and customer care, we aim to cultivate long-term relationships with our clients.” She went on to discuss the bank’s projected adaptability in the face of economic slowdowns and the steps taken towards revising loan terms to ensure competitiveness.
Future Outlook
The bank anticipates moderate loan growth, focusing primarily on corporate lending. The current environment suggests that borrowing may slow down as potential customers shift towards inflation-indexed loans. Landsbankinn aims to offer favorable terms for housing mortgages, especially for first-time buyers.
Financial Calendar
Landsbankinn has a comprehensive financial calendar set for upcoming events, including:
- Annual results for 2025: 29 January 2026
- Annual General Meeting: 18 March 2026
- Q1 2026 results: 30 April 2026
- Q2 2026 results: 23 July 2026
- Q3 2026 results: 22 October 2026
- 2026 results: 28 January 2027
Frequently Asked Questions
What was Landsbankinn's profit for the first nine months of 2025?
Landsbankinn’s after-tax profit reached ISK 29.5 billion during this period.
How does the return on equity compare to last year?
The return on equity increased to 12.2% from 11.7% in the previous year.
What is the significance of the combined ratio for TM?
The combined ratio for TM was 88.7%, indicating efficient insurance operations during the specified period.
What dividends were paid out to shareholders in 2025?
The total dividends paid in 2025 amounted to ISK 18,891 million.
What are the future plans for Landsbankinn?
Landsbankinn plans to offer competitive housing mortgage terms and continue enhancing its services, especially for younger customers.
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