Table of contents

Here you can read the highlights from the Bank´s 2019 reports.  For more information on the Bank´s 2019 financial results please visit our investor relations page

Our profile

Moving Iceland forward by empowering our customers to succeed

Íslandsbanki's purpose is to move Iceland forward by empowering our customers to succeed. Driven by the vision to be #1 for service, Íslandsbanki's relationship banking business model is propelled by three business divisions that manage and build relationships with the Bank's customers.

  • A leader in financial services in Iceland
  • Íslandsbanki is a universal bank with total assets of ISK 1,199bn,
  • A total capital ratio of 22.4% and a 25-40% market share across all domestic business segments at year-end 2019.

To our stakeholders

CEO's address

The banking environment is constantly moving in new directions, bringing with it exciting opportunities, but also bringing threats that we must bear in mind.

    Read CEO's address

    Chairman's statement

    After several boom years, the Icelandic economy was on the defence in 2019.

      Read Chairman's statement

      Economic review

      After a buoyant period of strong GDP growth, the Icelandic economy has entered an adjustment phase

      Fortunately, many of the pillars of the economy are quite robust at present,

      and it appears that the adjustment will be relatively painless and that living

      conditions for most will remain among the best in the world.

      Postivie force

      Through collaboration we are #1 for service

      Personal banking

      “In 2019, we saw a surge in use of the Bank’s digital solutions. We have collaborated with our customers to design solutions that can be used effectively for day-today banking activity. Our new app and our mortgage solutions have been enthusiastically received, and we are committed to providing thorough education and training about them. We will continue this journey in the new year, when we anticipate enabling customers to refinance their loans digitally and sign up for securities trading through a simple process. In 2019, we placed strong emphasis on children’s experience at our branches and stopped giving gifts made of plastic, in line with the Bank’s support of the Global Goals for Sustainable Development. We are excited about the new year, when we will continue to provide personalised and digital services aligned with our customers’ needs.”

      Sigríður Hrefna Hrafnkelsdóttir, Managing director of personal banking

        Business banking

        “We are delighted that for yet another year, Íslandsbanki’s Business Banking has topped the Gallup company survey. We stand out in terms of service and advice, we have the highest net promoter score (NPS), and when survey participants are asked who is at the forefront of the corporate banking market, their answers show that we are clearly in the lead. Lending growth was healthy during the year despite economic headwinds, including shocks to the tourism sector, a contraction in motor vehicle sales, and uncertainty about wage negotiations. The corporate confidence index was consistent with this in the first half of 2019, but as the year progressed, we could discern increased resilience and greater optimism. With entrepreneurship and innovation, small and medium-sized enterprises are the drivers of creation and a wellspring of new jobs and opportunities. As a result, entrepreneurship and innovation are the keys to further advancement in our economy, and we intend to support these creative efforts by providing excellent personal and digital service in a rapidly growing and highly competitive financial market.“

        Una Steinsdóttir, Managing director of business banking

          Corporate and investment banking

          “Corporate and investment banking aims to provide outstanding service and meet all of its customers’ needs in one place. At a time when lending growth is more restricted than before, it is more important than ever that we stand by our customers. We notice greater interest in sustainability and ESG matters among our customers and look forward to taking the next steps with them in this area. Solid long-term relationships with good customers create the foundation for profitable operations in the long run.”

          Ásmundur Tryggvason, Managing director of corporate & investment banking

            Iceland funds

            “In 2019, Iceland Funds implemented a new strategy on responsible investment. While our main objective is to secure strong long-term returns for our customers, we know that environmental, social, and governance factors affect firms’ success — and therefore the risks and returns on investments. Our employees now use responsible investment methodologies in all asset management. In this area, we collaborate with partners such as Norwegian asset management company Storebrand, which has adhered to a responsible investment strategy for more than a quarter-century.”

            Kjartan Smári Höskuldsson Managing director of Iceland funds

              Digital champions

              “The new frontier of banking is not only digitisation of traditional processes and products but the ability to personalise services and offers based on customer preferences, needs, and behaviours. Data and privacy will play a critical role in achieving this goal. It is with this in mind, that we have created an IT organisation that focuses on building flexible solutions with the client at the forefront, utilising the cloud as well as partners within a secure environment. Íslandsbanki has invested in a state-of-the-art security platform to ensure that we can collaborate within the new banking ecosystem, without compromising our customers‘ trust.“

              Riaan Dreyer Director of IT


              With passion and professionalism to guide you

              The Board of Íslandsbanki approved the Bank’s new sustainability strategy at the end of 2019, supporting the Bank’s role as a force for good in the community. The sustainability strategy aims at making the Bank a model of exemplary operations in the Icelandic business community, based on internationally recognised environmental, social, and governance (ESG) criteria.


              The Bank shaped a new role and new values with employee participation in a series of workshops held that spring. The Bank refined its vision and sharpened the focus that provides the foundation for its work today

                See Íslandsbanki´s strategy


                The Board of Íslandsbanki approved the Bank’s new sustainability strategy at the end of 2019, supporting the Bank’s role as a force for good in the community. The sustainability strategy aims at making the Bank a model of exemplary operations in the Icelandic business community, based on internationally recognised environmental, social, and governance (ESG) criteria.

                  Read more

                  Corporate governance

                  Íslandsbanki’s Board of Directors has resolved to pursue exemplary corporate governance practices that are consistent with applicable regulatory provisions, internationally recognised criteria, and best practice in corporate governance

                    Read more about corporate governance

                    Sustainability report

                    For the first time, Íslandsbanki has published detailed information about the environmental, social, and governance impact of its activities.

                      More in Annual and Sustainability Report (pdf)

                      Financials and Funding

                      Farsælt ár á skuldabréfamörkuðum

                      ”The Bank’s annualised return on equity from regular operations was 6.6%, which is below the long-term target of 8-10% but acceptable given the cooling of the economy in 2019. Íslandsbanki issued its first senior unsecured ISK bond during the year. The ISK 3.6bn issue was sold to a wide range of domestic investors. The Bank also issued a 10NC5 SEK 500m Tier 2 bond. Due to a strong liquidity position in both domestic and foreign currencies, the Bank bought back SEK and EUR notes in 4Q2019. At the end of December, the Bank’s total capital ratio was 22.4%, well above the the regulatory minimum. The year’s performance reflects the confidence Íslandsbanki has built up with investors and provides a springboard for strong core operations in the future.“

                      Jón Guðni Ómarsson, Chief financial officer

                      Risk man­age­ment

                      Risk assessment and the prudent evaluation and pricing of risk are key elements in Íslandsbanki’s operations. Íslandsbanki’s risk governance is based on a three lines of defence framework and aims for informed decision-making and strong risk awareness throughout the Bank.

                      Íslandsbanki’s Pillar 3 Report contains information on risk management, risk measurement, material risk exposures, capital adequacy and liquidity adequacy, in accordance with Icelandic law and European Regulation. The report should provide market participants and other stakeholders with information that facilitates a better understanding of the Bank’s risk profile and capital adequacy.

                      View Pillar 3 Report (pdf)

                      View Additional Pillar 3 Disclosure (excel)