Landsbankinn hf.: Financial results of Landsbankinn for the first three months of 2025

Core Insights - Landsbankinn reported a solid performance in Q1 2025, with a profit of ISK 7.9 billion and a return on equity of 10.0%, up from 9.3% in the same period last year [1][6]. Financial Performance - The bank's net interest income was ISK 14.8 billion, and net fee and commission income reached ISK 3.0 billion, both showing year-over-year increases [6]. - The cost-income ratio was 38.7%, compared to 33.6% in Q1 2024 [6]. - The total capital ratio stood at 23.6%, exceeding the Financial Supervisory Authority's requirement of 20.4% [6]. - The bank maintained a net interest margin of 2.7% for the period, with a margin of 2.1% for domestic households [6]. Strategic Developments - The acquisition of TM has been positively received, with significant progress in merging branches and IT systems, and the insurance segment performed well in March [2][4]. - The bank's credit rating was upgraded by S&P from BBB+ to A-, reflecting improvements in its capital structure and market access [4]. Market Conditions - Market volatility and global uncertainty have led to a slowdown in lending growth among individuals and corporates, although the overall financial position of these groups remains strong [5]. - Despite external challenges, the bank continues to offer competitive interest rates on deposits and loans, maintaining a 2.1% interest margin for households [6]. Customer Engagement - Landsbankinn has received strong customer satisfaction ratings, attributed to integrated services and a robust online banking platform [3][6]. - The bank's AGM approved a dividend payment of ISK 18.9 billion to shareholders, bringing total dividends paid since 2013 to ISK 210.6 billion [6].