Core Viewpoint - Landsbankinn reported solid operating results for 2025, with a profit of ISK 38 billion and a return on equity of 11.6%, reflecting stable operations in a challenging economic environment [1][3]. Financial Performance - Profit for 2025 was ISK 38 billion, slightly up from ISK 37.5 billion in 2024 [3]. - Return on equity (ROE) was 11.6% in 2025, down from 12.1% in 2024 [3]. - The cost-income ratio was 34.3%, among the lowest globally for comparable banks [1][3]. - Net interest income reached ISK 62.1 billion, while net commission income was ISK 12.6 billion, with a net interest margin of 2.7% [3]. - Total taxes paid by the Bank amounted to ISK 19 billion [3]. Dividend Policy - The Board of Directors plans to propose a dividend payment of approximately ISK 19 billion, representing around 50% of the year's profit [1][3]. - A special dividend payment is also under consideration for later in the year [1]. Lending and Deposits - Lending grew by ISK 76.9 billion, or 4.3%, while customer deposits increased by ISK 20.9 billion, or 1.7% [3]. - The total capital ratio at year-end was 24.8%, exceeding the Financial Supervisory Authority's requirement of 20.3% [3]. Customer Engagement and Services - Landsbankinn maintained a strong service network with 34 branches and service outlets, recording approximately 863,000 branch visits and over 250,000 phone calls to the Customer Service Centre [6]. - The Bank's focus on digital corporate banking services led to increased usage of technological solutions and a 10% rise in fee and commission income [7]. Market Position and Credit Rating - S&P upgraded Landsbankinn's credit rating to A- with a stable outlook, enhancing its competitiveness in international capital markets [3]. - The Bank issued FX bonds equivalent to approximately ISK 135 billion to refinance older funding and strengthen credit ratings [3][4]. Sustainability Initiatives - The Bank published its sustainability disclosure, reporting a 27% reduction in carbon emissions from its credit portfolio since 2019 [3].