Landsbankinn places strong emphasis on ensuring that innovation and development of banking service runs parallel to robust and strong operation.
It is Landsbankinn's policy that customers should be able to tend to all main banking business when and wherever.
In recent years, Landsbankinn has introduced several innovative digital service solutions, both for corporate and retail customers. These new solutions have been very well received and customer satisfaction with the Bank’s services has grown steadily. Development of digital solutions is investment-heavy yet by prioritising and maintaining vigilant cost-efficiency measures, the Bank has managed to keep cost at a minimum. The Bank compares favourably to international banks. Data published by the European Banking Authority (EBA) last fall showed that Landsbankinn has the 11th lowest cost-income ratio of banks in Europe. EBA’s comparison showed information about the operation and balance sheets of 131 banks in 27 countries in the EEA, with the most recent information dated 30 June 2019.
The aim of Landsbankinn's strategy is to ensure that customers feel they achieve success with the Bank and that the Bank and its customers enjoy mutual benefits from the relationship; that the Bank is a dynamic force that provides universal financial service tailored to fit the customer's needs in harmony with the community and the environment.
In 2017, the Bank introduced new focus points in its strategy, putting development of digital technology and customer service front and centre. These focus points were fourfold:
Accessibility: Customers can easily tend to all main banking business where and whenever they like. They have easy access to information and a good overview of their finances.
Efficiency: Customers save time and effort through use of the Bank's solutions. Their business is tended to expediently and securely using the service method of the customer's choosing.
Value-adding: Customers receive personal service tailored to meet their needs. They experience their relationship with the Bank as valuable and see that their business history is taken into account.
Initiative: We are attentive to customers and they are listened to. Customers see that the Bank's employees conduct their work in a professional manner and show initiative.
Work has now begun on developing a new strategy for the coming years to set goals in line with changing projects and challenges. This work is projected to end around mid-year and a new strategy is expected to be introduced this fall.
|Categories of assets for sale at year-end 2019:|
|Building sites for residential apartments and commercial housing||28|
|Building sites for cottages||234|
|Other real estate||1|
|Vehicles and equipment||3|
|Assets sold in 2019 fell into the following categories:||Number||Total sales value|
|Building sites for cottages||16||24,310,000|
|Vehicles and equipment, appropriated assets||49||35,973,305|
|State's profit from Landsbankinn holding|
|Initial capital contribution||-122,000|
|Interest on initial capital contribution||-76,347|
|Extrapolated interest impact**||-4,473|
|Interest in equity||246,428|
|State's net profit||184,428|
* Based on the book value of equity as at 31.12.2019
** Extrapolated interest on interest payments and dividendsAll amounts in ISKm
The governance structure of Landsbankinn forms the foundation for solid relations between shareholders, the Board of Directors, executives, employees and other stakeholders and encourages objectivity, integrity, transparency and responsibility in the management of the Bank. Landsbankinn adheres to recognised guidelines on corporate governance and regularly reviews the Bank’s compliance with such guidelines.
In April 2019, the Centre of Corporate Governance renewed its recognition of Landsbankinn as a model of corporate governance. The award is organised by the Iceland Chamber of Commerce, Nasdaq OMX Iceland, the Confederation of Icelandic Employers and the CCG at the University of Iceland.
The award is based on a review of the Bank’s governance practices, carried out by Deloitte ehf. The review is based on the Guidelines on Corporate Governance published by the Iceland Chamber of Commerce, the Confederation of Icelandic Employers and Nasdaq OMX Iceland. The Centre of Corporate Governance at the University of Iceland coordinates the award process.
Landsbankinn first received the award in 2014 and has been an annual recipient since. The aim of the recognition is first and foremost to encourage debate and actions that promote good corporate governance.
Landsbankinn complies with recognised guidelines on corporate governance and publishes a Corporate Governance Statement annually. The Statement includes information on the Board of Directors and its sub-committees.
Landsbankinn respects the legally protected rights of customers provided for in the Act on Personal Data Protection and in keeping with the Bank’s policy on data protection and the processing of personal information. Individuals can use the Bank’s data rights portal to request access to their own personal data that the Bank uses in its operation, and request correction or deletion of certain personal data from the Bank's systems.
In 2019, Landsbankinn processed 44 applications for access to information, 21 applications to delete data and one request to transfer data to another service provider. The Bank’s Data Protection Officer did not receive any complaints about the treatment of the personal data of customers or others in 2019.
A new Act on Measures against Money Laundering and Terrorist Financing entered into effect in January 2019. During the year, changes were made to the Bank’s processes and systems to reflect new requirements and the Bank’s increased emphasis on reducing even further the risk of its services being misused to launder money or finance terrorism. Landsbankinn has reinforced electronic surveillance of actions to counteract money laundering and terrorist financing. More employees were added to control functions to meet increased demand and reflect management’s heightened focus. A comprehensive risk assessment has been carried out on the Bank’s customers and its overall operation. In 2020, Landsbankinn will continue to develop its surveillance systems and work on making procedures related to ongoing monitoring of contractual relationships more efficient and user-friendly. Costs related to these issues are expected to increase alongside more stringent requirements.
In 2019, the Financial Action Task Force (FATF), placed Iceland on a list of countries that have declared their willingness to implement an action plan for remedy of the situation. The impact on the operation and activities of Landsbankinn has been limited as the demand for reform is not aimed at financial institutions. That being said, there has been a delay in some international transfers and a handful of financial undertakings with limited connections with Landsbankinn and Iceland have rejected transfers from Icelandic financial institutions.