Landsbanki Reports ISK 24.4 Billion in Profits Skip to content

Landsbanki Reports ISK 24.4 Billion in Profits

Icelandic bank Landsbanki reported profits of ISK 24.4 billion (USD 210 million, EUR 152 million) after taxes in the first two quarters of this year. In 2010, the bank’s profits were ISK 9.4 billion in the same period. It is a 160 percent year-on-year increase.

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Photo by Páll Stefánsson.

The bank’s director Steinthór Pálsson said the profits can largely be explained by currency exchange profits from capital stock and the sale of assets. “We are hopeful that we are now on the right track,” he told Fréttabladid.

However, a loss in capital stock is predicted in Q3, visir.is reports.

The value of the bank’s loans declined because of its resources regarding debt problems facing households and companies following the banking collapse in 2008.

Landsbanki’s equity is now ISK 208 billion (USD 1.8 billion, EUR 1.3 billion), compared to ISK 167 billion (USD 1.4 billion, EUR 1.0 billion) at the same time last year. The equity ratio is 22.4 percent.

Pálsson said the profits from the bank’s core operations are satisfactory. “It is important that the operations of Landsbanki are successful so that the tasks that lie ahead can be worked on in a difficult environment, such as the restoration of the Icelandic employment market,” he stated at a press conference on Wednesday.

According to visir.is, Landsbanki earned more in the first six months of 2011 than the other two large banks, Íslandsbanki and Arion Bank, combined.

Arion Bank (formerly Kaupthing) reported ISK 10 billion (USD 86 million, EUR 62 million) in profits in the first two quarters of 2011, and Íslandsbanki (formerly Glitnir) ISK 8.1 billion (USD 70 million, EUR 50 million).

In spite of the profits, 57 employees were laid off at Arion Bank this week.

Click here to read more about that story and here to read another recent story concerning Landsbanki.

ESA

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