Landsbankinn's net profit for the first half of 2016 was ISK 11.3 billion, compared to a net profit of ISK 12.4 billion for the same period in 2015.
Net interest income amounted to ISK 17.6 billion, an increase of 9% between periods, while fees and commissions were ISK 3.9 billion, a YoY increase of 14.7%. Loan revaluations increased by ISK 0.4 billion over the same period of the previous year. Other operating income amounted to ISK 4.4 billion, compared to ISK 7.3 billion a year earlier, with the decline due primarily to lower profit on equities. ROE for the period was 8.6% compared to 10.4% during the same period of 2015.
Total operating income in H1 amounted to ISK 28.2 billion, compared to ISK 28.8 billion in H1 2015. Operating expenses increased by 1.6% YoY. Salaries rose in line with latest collective bargaining agreements while the other items of operating expenses decreased by 4.5% between periods.
Landsbankinn's total assets as of the end of June 2016 amounted to ISK 1,110 billion, compared to ISK 1,173 billion a year earlier; the bank's balance sheet has therefore decreased by just over 5% during the past year. At the bank's AGM in April this year, a motion was passed to pay shareholders a total dividend of ISK 28.5 billion. As of the end of June the bank's equity was ISK 247.3 billion.
Landsbankinn's CEO Steinþór Pálsson: "Landsbankinn's performance during the first half of this year has been very satisfactory, especially during the second quarter. The bank has been able to use its strong position to advance on most fronts: In retail banking, Landsbankinn now has a market share of 37.6%, according to a Gallup survey in June, the highest ever. Its share of the corporate market has also increased and the results of service surveys show that both individuals and corporates appreciate the bank's services. The scope of asset management services is increasing steadily and the bank is a leading trader on the stock exchange. We are extremely pleased at the growing number of households and companies who see it to their advantage to do business with Landsbankinn.
Both its operating performance in the first half of this year and its growing market share show that Landsbankinn is on the right track in implementing its strategy - although there is still work to be done."
Investor call: On 12 August at 10:00 local time, the bank will host an investor call in English covering the main 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 4107310
HUG#2034760
