BofA: Investors pour into bonds, pull back from crypto
REYKJAVIK - Landsbankinn, Iceland’s largest commercial bank, reported a profit of ISK 18.3 billion after tax for the first half of 2025, with ISK 10.4 billion generated in the second quarter, according to a press release statement from the bank.
The bank achieved an annualized return on equity of 11.5%, up from 10.5% for the same period last year. Net interest income reached ISK 32.5 billion, while net fee and commission income totaled ISK 6.2 billion. The net interest margin as a ratio of average total asset position was 2.9%.
TM tryggingar hf., which Landsbankinn acquired on February 28, 2025, contributed ISK 925 million from insurance contracts during the period through June 30, with ISK 655 million coming in the second quarter. TM’s combined ratio was 93.2% for the first half of 2025.
The bank’s cost-income ratio increased to 35.8% from 33.1% in the first half of 2024. Landsbankinn maintained a total capital ratio of 24.0% at period end, exceeding the 20.4% requirement set by Iceland’s Financial Supervisory Authority.
In February, Landsbankinn completed its first issuance of Additional Tier 1 securities worth USD 100 million. The bank also issued senior non-preferred bonds totaling NOK 500 million and SEK 1,300 million.
Shareholders approved a dividend of ISK 18.9 million at the March 19 annual general meeting, bringing the bank’s total dividend payments since 2013 to ISK 210.6 billion by year-end.
In April, S&P Global Ratings upgraded Landsbankinn’s credit rating from BBB+ to A-, the highest rating the bank has received since S&P began rating it in 2014.
The bank noted a slowdown in mortgage lending alongside reduced demand for non-indexed mortgages, while corporate lending has shown steady growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.