Landsbankinn hf.: Landsbankinn's results for the first half of 2025

Core Viewpoint - Landsbankinn's strong half-year results indicate a solid position, with improvements in customer satisfaction and stable operations despite market volatility impacting investment returns [1] Financial Performance - The profit for the first half of 2025 was ISK 18.3 billion after tax, with ISK 10.4 billion in the second quarter [6] - Annualized Return on Equity (ROE) was 11.5%, up from 10.5% in the previous year [6] - Net interest income reached ISK 32.5 billion, while net fee and commission income was ISK 6.2 billion [6] - The net interest margin was 2.9% for total assets and 2.1% for domestic households [6] - The total capital ratio stood at 24.0%, exceeding the Financial Supervisory Authority's requirement of 20.4% [6] Market Activity - There has been a slowdown in mortgage lending, with reduced demand for non-indexed mortgages, while corporate lending has shown steady growth [2] - The bank successfully issued EUR 300 million in green bonds, marking all euro-denominated bond issues as green following a credit rating upgrade [2][6] Strategic Developments - The integration of TM into the Landsbankinn group is progressing well, with a focus on increasing TM's market share in the insurance sector [3] - The bank is emphasizing careful and professional management of the sale of historic properties in the city center [4] Credit Rating and Dividends - S&P Global Ratings upgraded the bank's credit rating from BBB+ to A-, the highest since 2014 [6] - The bank's AGM approved a dividend payment of ISK 18.9 million, bringing total dividends paid since 2013 to ISK 210.6 billion by year-end [6]