Landsbankinn‘s funding rests on three pillars: Deposits from customers, borrowings and share capital. The Bank’s credit rating is estimated as BBB+/A-2 with stable outlook by S&P Global Ratings.

Deposits from customers

Deposits from customers are the Bank‘s primary funding source. The deposits amounted to ISK 693 billion at year end 2018 and are for the most part non-indexed and available on demand. Indexed deposits amounted to ISK 114 billion at the end of year 2018.


EMTN-issuance in the foreign capital markets accounts for the majority of the Bank’s borrowings. The Bank plans ongoing issuance in the foreign capital markets. Furthermore, Landsbankinn issues covered bonds and commercial paper in the domestic market on a regular basis.

EMTN programme

The Bank has in place an EMTN programme for EUR 2 billion with the first bond issuance completed in the second half of 2015. The inaugural subordinated bond issuance under the programme was in September 2018. At year end 2016 the bond issuances under the programme amounted to the equivalence of ISK 199 billion in EUR, NOK and SEK. The bonds are listed on Euronext Dublin.

Covered Bonds

The Bank has in place an ISK 120 billion programme for issuance of covered bonds which will primarily be used to finance the Bank’s mortgage loan portfolio and to mitigate the Bank’s fixed interest rate risk. The covered bonds issuance amounted to ISK 106 billion at year end 2018. The covered bonds are listed on Nasdaq Iceland.

Commercial Paper

The ISK 50 billion debt securities programme that the Bank has in place has only been used for issuing commercial paper in the domestic market. Outstanding commercial paper issuance at year end 2018 amounted to ISK 3 billion. The commercial paper is listed on Nasdaq Iceland.

Share capital

The third financing pillar is share capital. The Bank’s equity amounted to ISK 240 billion at year end 2018 and the equity ratio was 24.9%.

Credit rating

International rating agency Standard & Poor's evaluates Landsbankinn's creditworthiness. The Bank's current rating grade is BBB+ / A-2 with a stable outlook.


Covered bonds

Information about covered bonds issued by Landsbankinn.