From the Chairman of the Board of Directors

Through focused efforts Landsbankinn has reinforced its position and achieved significant advances in 2015, including commencing the introduction of its new strategy to 2020, securing funding on foreign credit markets and integrating savings banks into its operations.
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In our reports at previous AGMs the Board of Directors has stated clearly that despite good profit the performance of the bank's core operations needed to be improved. At the most recent AGM a new strategy was presented, the objective of which was to achieve long-term profitability of over 10% in four years time.

The bank prioritises its customers' needs and avails itself of opportunities arising, for instance, from a more cost-effective balance sheet structure, growing business, efficiency and cost restraint. Work is in progress on a large number of projects which are systematically followed up on. The bank's excellent employees ensure that the planned success will be achieved, and will continue.

From its establishment in 2008 and right up until the past year Landsbankinn hf. had limited access to foreign credit markets. At the end of 2009 an agreement was reached with the insolvent estate of the old bank (LBI) for loans in the form of bonds which, together with a contingent bond subsequently issued, totalled ISK 352 billion.

Tryggvi Pálsson, Chairman of the Board

This debt has now been reduced to the equivalent of ISK 125 though agreements with LBI and the bank's new foreign funding. Full repayment of the debt to LBI is expected to be completed over the next two years. Landsbankinn's customers, both corporates and individuals, will benefit from this success.

Debt owed by Landsbankinn to LBI hf. (ISKbn)