Reports 2018

Íslandsbanki's 2018 Annual Report, with the Consolidated Financial Statements and the Pillar 3 Report, provide a clear picture of the Bank's operations during the year.

Annual Report (PDF)

Financial Statements (PDF)

Pillar 3 Report (PDF)

This is Íslandsbanki

Here you can read the highlights from the Bank´s 2018 reports.  For more information on the Bank´s 2018 financial results please visit our investor relations page


Driven by the vision to be #1 for service, our relationship banking business model is propelled by three business divisions that manage and build relationships with our customers. A clear focus is on simplifying our operations and demonstrating corporate social responsibility.

News and reports are accessible in the Media Center

To our stakeholders

We are delighted to rank #1 for banking services in Iceland among customers, and for the sixth year in a row we topped the Icelandic Customer Satisfaction Index. We introduced many digital solutions during the year and contributed to growth in the economy through lending to households and corporates. Our corporate finance and FX brokerage teams had an excellent year, and our subsidiary, Íslandssjóðir, launched Iceland’s first green bond fund.

Chairman's statement

CEO's address

Economic review

Iceland’s current business cycle has proven more resilient than many expected. GDP growth averaged 4.4% per year in 2013-2017. The surge in tourism has played a major role in this, as have a number of other factors that have supported private consumption growth and investment. Rapid growth has not given rise to a surge in debt or substantial economic imbalances, unlike many previous growth episodes in Iceland.

Investment for the future

Since Íslandsbanki’s establishment, its Board of Directors and employees, as well as its customers, have participated actively in shaping the Bank’s strategy at annual strategy meetings, the first one held in January 2009. The theme of each meeting has been related to the Bank’s focus at the time. The result is Íslandsbanki’s clear strategy, based on a stable business model and its vision of being #1 for service.

#1 for digital service

“In order to offer exemplary digital services, it is necessary to understand customers’ needs based on their expectations, develop the right solutions through testing and build on solid data and core systems. Last but not least, it is paramount to have superb employees and partners with a positive attitude towards the Bank’s changed business model and who see opportunities where others see challenges. We at Íslandsbanki, consider ourselves to be on the right path regarding this which can be demonstrated by the impressive digital advancements made in 2018 and we are excited about participating in the future digital banking environment.”

Sigríður Olgeirsdóttir, Managing director of IT and Operations

We are where you are

The Bank introduced a new organisational structure in May 2017, which now comprises three business divisions: Personal Banking, Business Banking and Corporate and Investment Banking. All divisions enjoyed a successful 2018.

Positive force in society

Corporate social responsibility is one of Íslandsbanki’s strategic priorities. In all of its work, the Bank has been guided by its determination to be a positive force in the community. Íslandsbanki’s social strategy is based on five pillars: business, education, environment, workplace, and community. Since 2009, the Bank has adhered to the corporate social responsibility principles laid down by the United Nations in the UN Global Compact and has pledged to work towards ten fundamental social responsibility principles defined by the UN and to support its key objectives. The Bank is also a proud contributor to the UN’s 17 Sustainable Development Goals.

Financials and funding

“It was gratifying to see the level of support our bond issues were met with across the course of 2018. In spite of the fact that credit markets were in bearish mode for more than half the year, the Bank enjoyed good success with its funding programme in foreign currencies. The Bank issued two very well placed senior callable bonds in the first quarter, one in EUR and the second in SEK, and then issued a number of private placements in SEK over the course of the Summer, even as spreads were widening across the spectrum. The issuing programme for the came to a close with a second issue of Tier 2 bonds in SEK, taking our issuance volume in Swedish kroner to appoximatel SEK 4 bln in the year. The Bank remains committed to showing investors as much liquidity as it can, and will remain responsive to their requirements.”

Jón Guðni Ómarsson, Chief financial officer

Read more in the Annual Report (PDF)

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)