The largest part of Landsbankinn’s funding is in the form of deposits from customers which amounted to ISK 693 billion at year-end 2018. The Bank reached a milestone in 2018 with its inaugural Tier 2 market funding.
The size of the programme for covered bond issuance is ISK 120 bn and was increased from ISK 100 bn in 2017. The covered bond issuance is primarily intended to fund the Bank’s mortgage portfolio and to mitigate interest rate risk. Regular auctions of covered bonds were held in 2018 where previously issued bonds were tapped. No covered bond series matured during the year 2018. Agreements with market makers in the secondary market for covered bonds were renewed in the year. At year-end, outstanding covered bonds issuance amounted to ISK 106 bn, increasing by ISK 36 bn during the year 2018.
Landsbankinn continued regular issuance of commercial paper in 2018 under its ISK 50 bn debt issuance programme. Outstanding issuance of commercial paper amounted to ISK 3 bn at year-end 2018 compared to ISK 7 bn at the end of 2017.
The Bank’s equity amounted to ISK 240 bn at year-end 2018, decreasing by ISK 6 bn over the course of the year. Landsbankinn paid ISK 24.8 bn in dividends to shareholders in 2018. The Bank availed itself of an authorisation to buy back own shares, offering shareholders to purchase up to 72.5 million shares, or up to 0.3% of all issued shares. Participation was limited and the Bank purchased around 15 million own shares during the repurchase period. Landsbankinn’s total capital ratio was 24.9% at year-end 2018.
Landsbankinn’s credit has been rated by the international rating agency S&P Global Ratings since the beginning of 2014. In October 2017, the Bank's credit rating was raised by one notch and is currently BBB+/A-2 with a stable outlook. In July 2018, S&P Global Ratings confirmed the Bank's short and long-term credit rating, maintaining a stable outlook.
|Issue date||October 2017|