Landsbankinn’s funding rests on three main pillars: Deposits from customers, market funding and equity. The Bank’s credit rating by S&P Global Ratings is BBB/A-2 with positive outlook.

S&P Global Ratings chart

Deposits from customers

The largest part of Landsbankinn’s funding is in the form of deposits from customers which amounted to ISK 1,049 billion at year-end 2023, mostly non-indexed and on demand. Deposits from customers grew by ISK 81 billion during the year. Inflation-linked deposits amounted to ISK 180 billion at year-end 2023, increasing by ISK 20 billion from the previous year.

Market funding

EMTN issuance

Unsecured bond issuance in foreign currencies is the most important pillar in the Bank’s market funding. The size of the Bank’s EMTN programme is EUR 2 billion and was increased in size from EUR 1.5 billion in 2017. Inaugural issuance under the programme was in 2015, with continued issuance on a regular basis to date. In 2021, the Bank published a Sustainable Finance Framework with a second-party opinion from Sustainalytics.

The Bank secured funding from the Nordic Investment Bank (NIB) in January in relation to construction of its new headquarters. The loan amount is USD 40 million with a 15-year term.

Bonds in the amount of EUR 300 million matured in May 2023.

In August, the Bank issued 2-year bonds in the amount of NOK 1,000 million and SEK 450 million.

The Bank issued green 3.5-year bonds for EUR 300 million in September. The bond was the Bank’s third green bond issuance in euros. In conjunction with the issuance, the Bank offered to tender outstanding bonds maturing in May 2024, resulting in a buyback of EUR 132 million.

A second loan agreement with NIB was finalised in December, amounting to USD 75 million for seven years.

At year-end 2023, unsecured bond issuance in foreign currency amounted to ISK 241 billion, increasing by ISK 13 billion during the year.

Covered bonds

The size of the programme for covered bond issuance is EUR 2,500 million and was increased from ISK 250 billion in 2022. The programme was updated in 2022 to allow for covered bond issuance in foreign currency under the programme in addition to its listing on the Irish stock exchange, Euronext Dublin.

In March, the Bank issued European Covered Bonds (Premium) in euros, the first from an Icelandic bank, in the amount of EUR 300 million for 5 years. The bond issuance further diversified the Bank’s funding sources.

Regular auctions of covered bonds were held in 2023 where previously issued series were tapped and addition to issuance of a new non-indexed series, LBANK CB 29. The non-indexed series LBANK CB 23 matured in 2023. Agreements with market makers in the secondary market for the Bank’s covered bonds were renewed in the year.

At year-end 2023, outstanding covered bonds amounted to ISK 268 billion, increasing by ISK 45 billion during the year.

Commercial paper

No commercial paper auctions were held in 2023 under the ISK 50 billion debt issuance programme. No series matured in 2023 and there was no outstanding issuance of commercial paper at year-end 2023.

Subordinated bond issuance

In March, the Bank issued subordinated bonds in the amount of ISK 12 billion for 10 years, callable in 5 years. The issuance counts as Tier 2 capital.

A call option on outstanding EUR 100 million subordinated bonds was exercised in September.

Subordinated bond issuance under the Bank’s debt issuance programme amounted to ISK 20 billion at year-end, decreasing by ISK 2 billion from the previous year.


The Bank’s equity amounted to ISK 304 billion at year-end 2023, increasing by ISK 25 billion during the year.

Landsbankinn paid ISK 8,504 million in dividends to shareholders in 2023.

Landsbankinn’s total capital ratio was 23.6% at year-end 2023.

Credit rating

Landsbankinn’s credit has been rated by international rating agency S&P Global Ratings since 2014. In November 2023, the outlook for the Bank’s credit rating was revised from stable to positive and its current rating is BBB/A-2 with positive outlook.

S&P Global Ratings
Long-term BBB
Short-term A-2
Outlook Positive
Issue date November 2023

Credit rating for covered bonds

In January 2021, covered bonds issued by Landsbankinn were rated by S&P Global Ratings. In November 2023, the credit rating of the covered bonds was raised to A+ with stable outlook.


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