Core Viewpoint - Landsbankinn has successfully completed the sale of floating rate senior preferred bonds amounting to SEK 500 million with a three-year maturity [1] Group 1: Bond Details - The bonds were priced at a spread of 90 basis points over the 3-month STIBOR [1] - The issuance will be conducted under the bank's EMTN programme [1] - The bonds are expected to be admitted to trading on Euronext Dublin starting from 28 August 2025 [1] Group 2: Transaction Participants - SEB acted as a dealer in this transaction [1]

Landsbankinn will publish its results for the second quarter of 2025 on Thursday, 17 July 2025. Investor relations For further information please contact Investor Relations by emailing ir@landsbankinn.is. ...

Group 1 - Landsbankinn has successfully concluded the sale of a new 5-year green bond amounting to EUR 300 million with a fixed rate of 3.50% [1] - The bonds were sold at terms equivalent to a spread of 135 basis points above mid-swap market rates [1] - Total demand for the bonds reached EUR 1.3 billion from approximately 100 investors across the UK, Nordics, continental Europe, and Asia [2] Group 2 - The bonds will be issued under the bank's EMTN programme and are aligned with the bank's sustainable finance framework, which has been reviewed by Sustainalytics [3] - The bonds are set to be admitted to trading on Euronext Dublin starting from June 24, 2025 [3] - The dealer managers for this bond issuance include Deutsche Bank, Goldman Sachs, Morgan Stanley, and UBS [4]

Correction: Price, amount and settlement date corrected. In relation to Landsbankinn’s covered bond auction yesterday, was a covered bond exchange offering where holders of the series LBANK CB 25 could sell the covered bonds in the series against covered bonds bought in the auction at a predefined clean price of 98.520. The covered bond exchange offering results in Landsbankinn buying ISK 2,340m in the series LBANK CB 25. Settlement will take place on 20 May 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].

Core Viewpoint - S&P Global Ratings has upgraded Landsbankinn's long-term credit rating from BBB+ to A-, marking the highest rating since 2014, with a stable outlook [1][2]. Credit Rating Upgrade - The upgrade is attributed to Landsbankinn's additional loss-absorbing capacity (ALAC) and sound market access demonstrated through the successful issuance of senior non-preferred debt [1][2]. - The resolution counterparty ratings (RCR) have also been raised from A-/A-2 to A/A-1 [1]. Financial Metrics and Expectations - S&P expects Landsbankinn to maintain an ALAC ratio above 4% and a risk-adjusted capital (RAC) ratio over 15% in the next two years, alongside a robust credit profile and strong income generation [2]. Management Commentary - The CEO of Landsbankinn expressed excitement over the upgrade, highlighting the bank's solid operations and access to both domestic and international capital markets [3]. Strategic Initiatives - Landsbankinn has taken strategic steps to enhance its capital structure efficiency and comply with increased regulatory demands for systematically important financial institutions, including issuing equity instruments qualifying as Additional Tier 1 (AT1) capital [4]. - The bank has successfully issued a senior non-preferred bond in foreign currency and is well-funded in both domestic and international markets [4].