SOURCE: Landsbanki Íslands hf

May 06, 2008 12:27 ET

Landsbanki Q1 2008 Results

REYKJAVÍK, ICELAND--(Marketwire - May 6, 2008) -

              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
  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%
  Q1 2007.
*          Core income from operations outside of Iceland totalled
  ISK 15.1bn (EUR 148m)in Q1 2008, equivalent to 58% of  the
  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
  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

For further information:
Landsbanki's CEOs: Sigurjón  Th. Árnason, Tel.  +354 410-4009 /
898 0177 and Halldór J. Kristjánsson,  Tel. +354 410 4015 / +354

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