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 negative outlook by S&P Global Ratings.

Deposits from customers

Deposits from customers are the Bank‘s primary funding source. The deposits amounted to ISK 708 billion at year end 2019 and are for the most part non-indexed and available on demand. Indexed deposits amounted to ISK 121 billion at the end of year 2019.


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 223 billion in EUR, NOK and SEK. The bonds are listed on Euronext Dublin.

Covered Bonds

The Bank has in place an ISK 200 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 141 billion at year end 2019. The covered bonds are listed on Nasdaq Iceland.

Commercial Paper

Outstanding commercial paper under the bank’s debt securities programme at year end 2019 amounted to ISK 4 billion. The commercial paper is listed on Nasdaq Iceland.

The bank’s inaugural subordinated bond issuance in ISK was issued in December in the amount of ISK 5,520 million. The bonds were issued under the bank’s debt securities programme.

Share capital

The third financing pillar is share capital. The Bank’s equity amounted to ISK 248 billion at year end 2019 and the total capital ratio was 25.8%.

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.