Results of the AGM of Landsbankinn 2019
The annual general meeting (AGM) of Landsbankinn held 4 April 2019 agreed to pay a dividend in the total amount of ISK 9.9 billion in 2019. As a result, total dividends paid by the Bank in 2013-2019 will amount to ISK 142 bn.
Landsbankinn's Report on Social Responsibility for 2018 was published on the occasion of the AGM. The Bank's annual report for 2018 was published alongside annual financial statements on 7 February. Both reports were published exclusively in electronic form and are available on the Bank's website.
The AGM was held at Grand Hotel in Sigtún, Reykjavík. The agenda for the meeting was regular AGM business.
Report of the Board of Directors
Helga Björk Eiríksdóttir, Chairman of the Board of Directors of Landsbankinn, discussed Landsbankinn's positive performance and strong standing, developments in financial services, how special bank taxes in Iceland skew the competitive position on the financial market, the Bank's new remuneration policy and its efforts as regards social responsibility. A long period of robust economic growth alongside low and stable inflation looks to be giving way to a cooling economy in 2019 alongside lower activity in tourism following the bankruptcy of WOW air. Corporate and household debt is more moderate than previously so that the effect of a cooling economy is more likely to be mild, in general.
Address from the Chairman of the Board of Directors to the AGM of Landsbankinn (icelandic)
Landsbankinn's 2018 results
Lilja Björk Einarsdóttir, CEO of Landsbankinn, presented the Bank's 2018 results to the AGM. The Bank's profit in 2018 totalled ISK 19.3 bn, return on equity (ROE) was 8.2% and the cost-income ratio was 45.5%. The loan portfolio grew by ISK 138.9 bn, both loans to individuals and companies, and loans in arrears decreased by 0.8%. Landsbankinn's equity amounted to ISK 239.6 bn at year-end 2018 and its CAR was 24.9%, to name key figures from the financial statements.
Lilja spoke of Landsbankinn's growing market share, an on-going trend of the past five years, and the Bank holds the highest market share in the retail market, around 38%. Landsbankinn's market share among corporates was 34%. Customer satisfaction with the Bank's services has grown and trust increased.
Lilja described Landsbankinn's operation as solid. The Bank places emphasis on improving services to customer and has recently introduced several new digital solutions for both companies and individuals.
Presentation of Landsbankinn's performance (icelandic)
Dividend payment of ISK 9.9 billion approved
The AGM approved the motion of the Board of Directors to pay shareholders a dividend amounting to ISK 0.42 per share for the accounting year 2018, a total of ISK 9,922 million. The dividend will be paid in two equal instalments, on 10 April 2019 and 2 October 2019. The dividend payment represents around 51.5% of profit for the year 2018.
The dividend payment accords with Landsbankinn's dividend policy, approved by the Board of Directors previously this year. The dividend policy states that Landsbankinn aims to pay regular dividends to shareholders amounting in general to over 50% of the previous year's profit. The aim is also to make special dividend payments to optimise the Bank's capital structure, as and when appropriate. In determining dividends, it must be ensured that the Bank maintain a strong, long-term financial position.
Election to the Board of Directors of Landsbankinn
The following persons were elected regular members of the Board of Directors:
- Helga Björk Eiríksdóttir, Chairman
- Berglind Svavarsdóttir
- Einar Thór Bjarnason
- Guðbrandur Sigurðsson
- Hersir Sigurgeirsson
- Sigríður Benediktsdóttir
- Thorvaldur Jacobsen
The following persons were elected alternates to the Board of Directors:
- Guðrún Ó. Blöndal
- Sigurður Jón Björnsson
Further information on Landsbankinn's AGM