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

Core Viewpoint - Landsbankinn reported strong performance in the first nine months of 2025, with significant growth in young customer engagement and a solid financial standing despite a challenging economic environment [1][5]. Financial Performance - After-tax profit for the first nine months of 2025 was ISK 29.5 billion, with ISK 11.1 billion earned in the third quarter [5]. - Return on equity (ROE) increased to 12.2%, up from 11.7% in the same period last year [5]. - The net interest margin was 2.9% of average total assets, with net interest income at ISK 49.4 billion and net fee and commission income at ISK 9.2 billion [5]. - The cost-income ratio was 33.2%, slightly higher than 32.3% for the same period in 2024 [5]. - The total capital ratio stood at 24.0%, exceeding the Financial Supervisory Authority's requirement of 20.4% [5]. Customer Engagement - Young customers aged 18-24 trading in Landsbréf funds increased by 45% compared to the previous year [5]. - There was a 31% growth in young customers entrusting the Bank with their supplementary pension savings [5]. Corporate Actions - Landsbankinn sold properties at Austurstræti 11 and connected buildings for ISK 2.85 billion, marking a significant milestone in the Bank's history [3][5]. - The Bank has reduced its square meter footprint by approximately 40% in recent years [3]. Market Position - Landsbankinn remains the largest lender in the housing loan market, focusing on competitive terms for housing mortgages [2]. - The Bank is reviewing terms on variable interest rates for new housing mortgage loans following a Supreme Court ruling [2].