Corporate Banking

Satisfaction among Landsbankinn’s corporate customers has never rated higher. The Bank aims to offer quality personal service and increasingly more effective tech solutions to ensure that companies of all shapes and sizes receive excellent service.

Fara neðar
Landsbankinn maintained its strong standing in the corporate market in 2019. Its market share in corporate banking measures 33.8% on an annualised basis in 2019 according to Gallup, or similar to the previous year.

Strong standing and increased satisfaction with services

Overall, 2019 was a good year for business and industry. Following robust economic growth in previous years, the economy is now showing increased slack.

The Bank’s corporate loan portfolio showed conservative growth in 2019. Landsbankinn's share in loans to corporates remains the largest of the three commercial banks, or 41.7%, a 1.1 percentage point increase as compared to the previous year.*

In 2019, Landsbankinn served a total of 24,000 companies, 14,600 of which trade with Landsbankinn as their main bank of business. Special emphasis was placed on growing the product selection to corporates, improve service and add to the number of self-service solutions.

*According to the 2019 9M interim financial statements of the banks. Will be updated once the annual financial statements of all the banks have been published.

Digital solutions well received

The future of banking lies in customers' ready access to robust financial service channels. The selection of self-service solutions to companies has been increased and several new solutions were introduced in 2019. These new solutions were well received and the use of digital self-service solutions has increased steadily.

More information about new digital service solutions is provided in the chapter on development in corporate banking services.

Share in the corporate banking market
Source: Gallup

Leader in construction financing

Landsbankinn has over the course of many years been a leader in construction financing such as in the funding of new residential apartments and hotels. There has been great demand for residential housing in recent years and the Bank has funded many contractors active in the construction of residential housing.

At the end of 2019, larger construction projects financed by the Bank numbered 130, managed by 100 contracting firms. Hotel construction projects numbered three and commercial housing projects were four. Construction projects involving new residential housing were by far the most numerous, with a total of 123 such undertakings, financed by Landsbankinn, in full swing at the end of the year.

These projects involve the construction of 4,750 apartments, most of which will enter the real estate market in 2020 and 2021. 936 of these apartments are rental apartments such as student housing and for the general market, i.e. owned by non-profits. The lion's share of these apartments is located in the capital area, with some larger projects also in Selfoss, Akranes and Reykjanesbær. Large construction projects are expected to grow less frequent in the near term.

Market share in corporate lending*

*According to the banks' annual financial statements for 2019.

Large construction projects with the Bank’s involvement


Residential apartments financed by Landsbankinn*

*Most entering the market in 2020 and 2021

General residential apartments financed by Landsbankinn


Supports development in the travel industry

Landsbankinn has variously supported the growth and development of the sector through its rapid growth phase in recent years. The travel industry grew quickly until 2018 when it suffered some contraction following the bankruptcy of WOW air in March 2019. The number of foreign visitors to Iceland fell YoY between 2018 and 2019, yet just under 2 million tourists still arrived in Iceland in 2019. Arrivals are expected to increase slowly in coming years. Tourism remains the industry that generates the most foreign currency and this can be expected to continue in coming years.

Landsbankinn currently finances the construction of three hotel projects initiated in 2018, incorporating a total of 310 rooms. Two of these hotels will be operational in 2020 and one in 2021. While the growth in tourist arrivals to Iceland has declined somewhat, the hotel occupancy rate remains high, especially in the summer months.

The Bank has shown willing to participate in sound development projects within the various fields of the travel sector, such as entertainment. ITF I, a dedicated travel industry fund managed by Landsbréf hf. a subsidiary of the Bank, has invested in many exciting ventures related to tourism. Landsbankinn has also been an active participant of the Icelandic Tourism Cluster since its establishment in 2012.

  • Landsbankinn Economic Research presented its new analysis of the status and outlook for the travel sector at the Bank’s conference on the travel industry.

Umræðan: Travel sector 2019**In Icelandic

Strong supporter of companies in both town and country

2019 was relatively successful in fisheries and seafood. Operations were generally profitable and investment in new vessels and equipment continued. This development presented Landsbankinn with new business opportunities with old customers and also led to new customers establishing business relations with the Bank, which is a very positive development.

Landsbankinn's market share in fisheries and seafood remains strong and its competitive position has improved with lower financing cost and greater operating efficiencies. The outlook in fisheries and seafood is good as the ISK has depreciated, fishing fees decreased and main fishing stocks are strong.

Following significant development in agriculture, the emphasis will be on operating efficiency in coming years. Agricultural practices are generally thriving and the outlook is positive. Landsbankinn will remain a strong partner of Icelandic agriculture.

Leading in services to trade and service firms

Following considerable growth in business with trade and service enterprises in 2017 and 2018, the Bank maintained its leading position in these industries in 2019. The trade and service industry includes a wide range of customers in wholesale, retail, transport, IT and other services. New customers brought their business to the Bank and several exciting projects were undertaken with current customers with an eye to supporting their growth. The Bank's lending to companies in trade and service strengthens its diversified corporate loan portfolio.

Knowledge concentrated in the Corporate Banking Service Centre

Landsbankinn’s Corporate Banking Service Centre  provides SMEs in the capital region with all necessary financial services. It also provides simpler daily service to larger companies that bank with Landsbankinn. The Corporate Banking Service Centre concentrates a great deal of knowledge under one roof. Communication channels are short, to the customers’ benefit.

Lending growth by the Corporate Banking Service Centre was conservative in 2019, as open collective bargaining agreements and the bankruptcy of WOW air affected demand for credit in the first half of 2019.

Customers appreciate communication

Each company that banks with Landsbankinn has a dedicated account manager, their liaison with the Bank. Account managers enable quick and easy access to the Bank’s services and endeavour to respond to requests as promptly as possible. Every effort is made to ensure that the Bank’s employees are well acquainted with each company’s operation to be able to respond quickly to its needs. 

In 2017, Landsbankinn introduced 360° corporate consultations, a service that was very well received. During these consultations, company operations are reviewed along with management plans for the future and Landsbankinn’s possible involvement. In 2019, there was a continuation of the dialogue with numerous customers and Account Managers in the Corporate Banking Service Centre, as well as in branches throughout Iceland, receive very positive customer feedback from these consultations. 

Alongside emphasis on ensuring good access to financial service, Landsbankinn focuses on monitoring and analysing the business environment companies operate in and to disseminating such information to its customers. For that purpose, Landsbankinn hosted an educational event on cyber security in 2019, a conference on the travel industry and seminar on the sale of Icelandic seafood to international online shops at the 2019 Seafood Conference. Landsbankinn Economic Research is a prolific producer of research and analyses of economic developments, regularly communicated in publications, in meetings and conferences. Landsbankinn employees also share this knowledge through direct interaction with customers.

Further details about analytical work and publication is presented in the chapter on publication.