Landsbanki Q1 2008 Results

 
 
              Landsbanki Íslands hf. - Q1 Results 2008
                  After-tax Profit ISK 17.4 billion
                     Return on Equity (ROE) 44%
                                   
                                   
Highlights of the Interim Financial Statements of Landsbanki Íslands
hf. for Q1 of 2008
 
 
 
*          Net pre-tax profit in Q1 2008 was ISK 19.7bn (EUR 193m).
  The bank's after tax profit was ISK 17.4 bn (EUR 171m). 
*          After-tax ROE was 44%.  The bank's equity ratio (CAD
  rules) was 11.0% at the end of March. Tier 1 capital was 8.8%.
*           The group's core income (net interest income plus fees
  and commissions) was ISK 26.2bn (EUR 257m), an increase of 27% over
  Q1 2007.
*          Core income from operations outside of Iceland totalled
  ISK 15.1bn (EUR 148m)in Q1 2008, equivalent to 58% of  the group's
  total core income.
*           Trading gains and investment income amounted to ISK
  14.7bn (EUR 144m) compared to ISK 8.8bn in Q1 2007.
*          The bank's total assets amounted to ISK 3,836bn (EUR
  32.1bn) at the end of March 2008 compared with ISK 3,058bn (EUR
  33.4bn) at the beginning of 2008.  In EUR terms, total assets
  decreased by 4% during the period. 
*          The bank's liquidity is strong, totalling EUR 8.2 billion
  as of 31 March 2008.
 
 
 
 
CEO Sigurjón Þ. Árnason:
 "Landsbanki has put in  a very credible performance  in Q1 2008,  not
least considering the difficult situation on international  financial
markets.  The Group's core  earnings have increased  by 27% over  the
first quarter last  year, and its  ROE for the  quarter was close  to
44%. The bank  is currently benefitting  from measures undertaken  in
2006  and  2007  to   restructure  its  capital  base.   Furthermore,
Landsbanki's loan  portfolio is  high  quality and  the bank  has  no
structured credit exposures such as  CDOs, SIVs, etc. The bank's  CAD
equity ratio has remained strong and is currently 11%. These  factors
reinforce Landsbanki's  position  under the  circumstances  currently
prevailing on international markets."
 
 
CEO Halldór J. Kristjánsson:
 "With its strong  financial position and  light repayment profile  of
long term  debt  maturing in  2008,   Landsbanki is  well  placed  to
navigate the uncharted waters of world financial markets at  present.
During this period, Landsbanki will moderate balance sheet activities
and seek greater cost efficiency and potential synergies through  the
continued consolidation and integration of its operational  platform.
Further diversification of the bank's funding profile continues to be
a priority. Icesave, the  UK online savings  account, is a  continued
success with new products  and record account  openings in Q1  2008. 
More than 40% of  Icesave deposits are now  term deposits or in  cash
ISAs accounts. Introduction  of new deposit  initiatives in  selected
European markets in the next  months will provide added anchoring  to
the already  strong  deposit  to  loans  rato  of  66%.  Furthermore,
Landsbanki has to date concluded a series of bond private  placements
equivalent of  EUR  1.4  billion,  at prices  below  the  5-year  CDS
market."
 
A copy of Landsbanki's interim financial statements for Q1 2008 is
available on the Bank's website www.landsbanki.com/ir
 
 
For further informatio:
Landsbanki's CEOs: Sigurjón  Th. Árnason, Tel.  +354 410-4009 /  +354
898 0177 and Halldór J. Kristjánsson,  Tel. +354 410 4015 / +354  820
6399.