Íslandsbanki posted a net profit of ISK 7.07 billion for the second quarter of 2026, broadly in line with the same period last year despite rising operating costs and weaker fee income.
The bank’s return on equity was 13.3% for the quarter, compared with 13.0% a year earlier, according to its latest financial results.
What’s the Story?
Original source: RÚV
- Quarterly profit remained largely unchanged from the same period in 2025.
- Higher net interest income offset weaker fee income and rising operating costs.
- Customer lending continued to grow, increasing by ISK 14.8 billion during the quarter.
Lending Growth
Chief Executive Officer Jón Guðni Ómarsson described the results as solid and broadly in line with expectations.
He said the bank’s core business continued to demonstrate strong underlying performance, but noted that uncertainty in the global economy, volatility in international markets and lower activity in Iceland’s domestic capital markets weighed on fee income during the quarter.
Net interest income rose to ISK 15.3 billion, up ISK 1.4 billion year-on-year, while the bank’s net interest margin increased slightly to 3.4% from 3.3%.
Operating expenses increased by ISK 800 million compared with the second quarter of 2025, reaching ISK 8.1 billion.
Customer lending grew by ISK 14.8 billion during the quarter, bringing the total loan portfolio to ISK 1.416 trillion at the end of June.
Jón Guðni said the bank continued to execute its strategy, attracting new customers while demand for its recently introduced loyalty programme increased.
He also highlighted strong activity in the bank’s bond and equity brokerage businesses, saying the results reflected the strength of Íslandsbanki’s customer relationships and the breadth of its operations.
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