Landsbankinn’s funding rests on three main pillars: Deposits from customers, market funding and equity. The Bank’s credit rating by S&P Global Ratings is BBB/A-2 with stable outlook.

Landsbankinn credit rating

Deposits from customers

The largest part of Landsbankinn’s funding is in the form of deposits from customers which amounted to ISK 968 billion at year-end 2022, mostly non-indexed and on demand. Deposits from customers increased by 68 billion during the year. Inflation-linked deposits amounted to ISK 160 billion at year-end 2022, increasing by ISK 24 billion from the previous year.

Market funding

EMTN issuance

Bond issuance in foreign currencies is the most important pillar in the Bank’s market funding. The size of the Bank’s EMTN programme is EUR 2 billion and was increased in size from EUR 1.5 billion in 2017. Inaugural issuance under the programme was made in fall 2015 with continued issuance on a regular basis to date. In 2021, the Bank published a Sustainable Finance Framework with a second-party opinion from Sustainalytics.

In January, the Bank issued 1 and 2-year bonds in the total amount of SEK 1,700 million and 2-year bonds amounting to NOK 500 million.

In August, the Bank issued 1.5 and 2.5-year bonds in the total amount of NOK 650 million.

Bonds originally in the amount of EUR 300 million matured in March 2022; the Bank had already bought back EUR 156 million thereof in 2021.

At year-end 2022, bond issuance in foreign currency amounted to ISK 254 billion, increasing by ISK 14 billion during the year.

Covered bonds

The size of the programme for covered bond issuance is EUR 2,500 million and was increased from ISK 250 billion in 2022. The programme was updated in 2022 to allow for covered bond issuance in foreign currency under the programme in addition to its listing on the Irish stock exchange, Euronext Dublin.

Regular auctions of covered bonds were held in 2022 where previously issued series were tapped and addition to issuance of a new non-indexed series, LBANK CB 27. The inflation-linked series LBANK CBI 22 matured in 2022. Agreements with market makers in the secondary market for covered bonds were renewed in the year.

At year-end 2022, outstanding covered bonds amounted to ISK 223 billion, increasing by ISK 5 billion during the year.

Commercial paper

No commercial paper auctions were held in 2022 under the ISK 50 billion debt issuance programme. No series matured in 2022 and there was no outstanding issuance of commercial paper at year-end 2022.

Subordinated bond issuance

Subordinated bond issuance under the Bank’s debt issuance programme amounted to ISK 5.5 billion at year-end and subordinated issuance under the Bank’s EMTN programme amounted to EUR 100 million at the same time. Both bond issues count as tier 2 capital and to the total amount was ISK 22 billion at year-end 2022, increasing by ISK 1 billion from the previous year.


The Bank’s equity amounted to ISK 279 billion at year-end 2022, decreasing by ISK 4 billion over the course of the year.

Landsbankinn paid ISK 14,409 million in dividends to shareholders in 2022 and also a special dividend of ISK 6,141 million.

Landsbankinn’s total capital ratio was 24.6% at year-end 2022.

Credit rating

Landsbankinn’s credit has been rated by international rating agency S&P Global Ratings since 2014. In April 2020, the Bank’s credit rating was lowered to BBB/A-2 with stable outlook.

S&P Global Ratings
Long-term BBB
Short-term A-2
Outlook Stable
Issue date April 2020

Credit rating for covered bonds

In January 2021, covered bonds issued by Landsbankinn were rated by S&P Global Ratings. In May 2022 the covered bonds’ credit rating was raised to A.


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