Customers adapted quickly to new solutions and emphasis was placed on enhancing the quality of communication with customers through increased use of self-service solutions and robust information sharing. High interest rate levels, persistent inflation and the expectation that it will continue to persist in conjunction with looming difficult collective bargaining negotiations in the labour market impacted the market significantly in 2023.

Landsbankinn has emphasised development of its digital service platform in recent years and especially Landsbankinn’s app. We want our customers, both retail and corporate, to be able to tend to their banking business easily at anytime and anywhere.

A record number of corporate customers joined Landsbankinn in 2023. We continued to support a vital economy with secure funding and new digital solutions. The Bank’s corporate loan portfolio grew by 7.7% in 2023.

We simplify life for our customers by offering smart solutions that make our service accessible anytime and anywhere. The personal touch remains indispensable and by drawing on the great resource that is our team in rural Iceland, we are able to offer even better banking service.

We take full advantage of technology to provide first-rate banking service and simplify life for our customers. At the same time, we take care to offer professional, personal service and financial advice for both businesses and individuals. 

Modern and personal financial service that simplifies life

Landsbankinn was ranked highest by banking customers in the Icelandic Performance Satisfaction Index 2023, the fifth year running.

Landsbankinn takes full advantage of digital service channels to advance its operation and simplify life for customers. In recent years, development of Landsbankinn’s app has been one of our main priorities. We want our customers, both retail and corporate, to be able to tend to their banking business easily, anytime and anywhere.

Smarter banking built on technical innovation and personal service

We simplify life for our customers by offering smart solutions that make our services accessible when and where needed. The personal touch remains indispensable and by drawing on the great resource that is our team in rural Iceland, we are able to offer even better banking service.

Sound and sophisticated financial service

A record number of corporate customers joined Landsbankinn in 2023 and new corporate customers are up by 18% between years. We continued to support a vital economy with secure funding and new digital solutions through our fantastic app.

Solid support and new solutions for companies

Reliable communication and increased use of self-service solutions

Satisfied customers

Climate issues

Community support

Human resources and equality

Highlights of the Annual Financial Statement

Key sustainability initiatives

Legal notice

Funding

From the Chief Executive Officer

Corporate banking

Sustainability and society

Annual & Sustainability Report

Governance and organisation

From the Chairman of the Board

Financials

Sustainability accounts

Risk management

Documents accompanying the Annual Report

Main news 2023

Governance

Personal banking

Continuous development 

Strategy

Asset Management & Capital Markets

The Icelandic economy showed resilience and drive in 2023, despite various challenges. While economic growth has slowed, the outlook for 2024 remains good, provided inflation can be brought under control and conditions created for rate cuts.

The operating year 2023 was strong for the Bank but also a year of milestones and changes. We are proud that banking customers are most satisfied with Landsbankinn’s service and intend to continue to simplify life for them and have a positive impact on Icelandic society.

At the core of our strategy - Landsbankinn, an ever-smarter bank - is the ideal of mutual trust and a personal approach to banking. We want to take advantage of all the opportunities technology affords without losing our personal touch. The strategy also describes our dynamic ability to develop and evolve.

Good governance forms the foundation for solid relations between shareholders, the Board of Directors, executives, employees, customers and other stakeholders and encourages objectivity, integrity, transparency and responsibility in the management of the Bank.

Here are the main news items published about Landsbankinn's operations in 2023.

In 2023, we hosted Landsbankinn’s Sustainability Forum for the second time, assessed greenhouse gas emissions from our credit portfolio for the third time and adopted science-based emission targets which were approved in February 2024. Six interesting projects received grants from Landsbankinn’s Sustainability Fund in the second round of allocations and we remain a global leader according to the ESG risk rating of Sustainalytics .

We put a great deal of effort into knowing the environmental impact of our operation. We continue to analyse our carbon footprint and our impact on society.

We comply with the GRI Standards option and our Annual & Sustainability Report also functions as a Communication of Progress report to the UN Global Compact. We continue to support the Global Compact and adhere to its guidelines. We also submit a Communication of Progress report to the UN Global Compact through their web portal.

Human resources are always an important aspect of the Bank’s operation. We emphasise individual development, the work environment and corporate culture in all our undertakings. The Bank’s employees are a font of knowledge, experience and they build on a strong tradition of taking on new professional skills. This allows us to maintain a good blend of experienced personnel and new team members.

We participate in various projects that encourage development and progress in society and strive to throw our weight behind different projects and associations around the country. We want our contribution to be dynamic by being a trusted partner for a number of years and then moving on to a new initiative. We look to supporting both sports, culture and the arts, in addition to charities and education. We publish an extensive selection of content on the economy and focus on education and debate about finances to have a positive impact on Icelandic society.

The profit of Landsbankinn in 2023 was ISK 33.2 billion after taxes, compared with ISK 17.0 billion in 2022. After-tax return on equity for 2023 was 11.6%, compared with 6.3% the previous year.

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.

Risk is inherent in Landsbankinn’s entire activity and robust, sound risk management is key to the Bank’s operation. Risk management involves identification, assessment, disclosure and control of all risks.

All main documents accompanying the Annual & Sustainability Report, such as the Annual Financial Statements, the Fact Book, the Corporate Governance Statement, the Pillar III Risk Report, the GRI Index and Appendix, can be accessed from here.

The Annual & Sustainability Report of Landsbankinn provides an insight into the Bank’s services to individuals and companies, new digital service solutions and sustainability as well as human resources and equality.

This online Annual & Sustainability Report is published subject to reservations regarding possible errors. Should typographical errors, discrepancies or other obvious inconsistencies be discovered, Landsbankinn reserves the right to correct these and to update the online Annual & Sustainability Report accordingly in each instance.

Landsbankinn hf.
Reykjastræti 6, 101 Reykjavik
Reg. No. 471008-0280
Swift/BIC: NBIIISRE
Tel: +354 410 4000
landsbankinn@landsbankinn.is

Landsbankinn Annual & Sustainability Report 2023