Personal Banking

In 2019, Landsbankinn issued loans to 1,056 households and private individuals to fund the purchase of their first home. The Bank's market share of loans to purchase first housing is around 38%. Customer satisfaction with the Bank's services has never been higher.

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Landsbankinn has held the highest share of the retail market six years running. Gallup surveys show that confidence in the Bank and customer satisfaction has grown steadily during that time.
Market share - Retail market
Source: Gallup

Simpler and more accessible financial service

In 2019, Landsbankinn introduced several innovative digital services that make banking simpler and more accessible to retail customers. Special emphasis was placed on digital payment methods and automation of applications for short-term loans for private persons. More information about new digital service solutions is provided in the chapter on better banking

Housing loan market

Landsbankinn issued new housing loans in the total amount of ISK 138 bn in 2019, as compared with ISK 130 bn in 2018. The Bank’s activity in the housing loan market remains high, despite stiff competition. There was continued demand for refinancing, as interest rates decreased in 2019 and many customers attained more favourable terms by refinancing older loans. Landsbankinn emphasises offering competitive terms on housing loans, as well as quick and professional service in the lending process. Customers increasingly complete online credit assessments, submitting them to apply for housing loans with the Bank.

Growth in non-inflation indexed housing loans continued in 2019. In 2017, the ratio of non-indexed housing loans was 26%, based on total amount, and had risen to 61% in 2019. Housing loans numbered just over 8100 in 2019 and the Bank’s market share in new housing loans was 28.2% as compared with 26% in 2018.

Market share in new housing loans in 2019

New housing loans (ISKbn)

Market share in loans for initial housing was 38%

Landsbankinn lends up to 85% of the purchase price of residential housing. Loans are granted for up to 70% of the purchase price with an up to 35-year term and the option of a supplementary loan of 15%, mainly useful to first-time buyers. Landsbankinn supports first-time buyers by cancelling its borrowing charge.

In 2019, the Bank issued loans to 1,056 families or individuals for first-time housing purchases, a total of ISK 30 billion. The Bank's market share in loans to purchase initial housing was around 38% in 2019. Clearly, a large number of first-time home buyers chooses to finance the purchase with loans from Landsbankinn.

Interest rate changes and variable interest rates more common

Landsbankinn lowered interest rates in 2019. Lowest non-inflation indexed rates on housing loans were 6% at the beginning of 2019 and stood at 5.05% at year end. The total decrease during the year is 0.95 percentage points. Inflation-indexed interest rates decreased by 0.35 percentage points during the year, from 3.55% to 3.2%.

Around 79% of all new housing loans issued by Landsbankinn in 2019 had a variable interest rate, a higher ratio than previously.

Market share in housing loans for first-time purchases


Collection of Aukakrónur peaks

Aukakrónur, Landsbankinn’s benefit system, is going strong. Never before have holders of Aukakrónur cards been as numerous and collection of Aukakrónur peaked in 2019.

Customers collected a total of 416 million Aukakrónur in 2019 and this is the first time the amount exceeds 400 million.

Over 67,000 customers now own Aukakrónur, collected by using credit cards linked to the benefit system. More than 250 companies in trade and commerce are partners of the Aukakrónur system. Aukakrónur accrue on all domestic credit card turnover and, in addition, the programme’s partners offer a refund discount in the form of Aukakrónur. Customers can view their Aukakrónur balance in the Landsbankinn app and in online banking, as well as a list of partners. 

Fun calls before Christmas

  • In the weeks leading up to Christmas, the employees of Landsbankinn’s Customer Service Centre call customers to tell them about the unused Aukakrónur they have accrued.

Collection of Aukakrónur
Aukakrónur usage

Customers happy with 360° financial review

Over the course of several years, Landsbankinn has offered customers comprehensive financial advice free of cost termed the 360° financial review, the aim of which is to increase customers’ financial security. The 360° financial review is a personalised financial consultation that looks to every aspect of an individual’s or couple’s financial health, from loans to savings to pension and insurance.

Surveys show that Landsbankinn customers who participate in the 360° financial review are its most satisfied customers.

At the end of a 360° financial review, customers are asked about their experience. Satisfaction with the review has been extremely high since the beginning. In 2019, customer satisfaction rated 4.7 out of 5.

Appointment with financial advisor

In 2019, the Bank began offering customers the option of making appointments to receive financial advice via With appointments, customers avoid waiting time and staff can be better prepared to offer tailored financial advice.

Customer satisfaction with the 360° financial review

4.7points out of 5

Strong in the vehicle loan market

Car sales contracted significantly in 2019 following record sale years in 2017 and 2018. According to information from the Icelandic Transport Authority, 11,731 new cars were registered in 2019, which is a 34.7% decrease from the previous year. New registration of used passenger cars also decreased considerably, with over 1,900 used vehicles registered for the first time in Iceland in 2019 which is a 40% contraction from the previous year.

In recent years, total lending for vehicle purchases increased in line with higher vehicle sales. Conversely, new loans by Landsbankinn Vehicle & Equipment Financing contracted between years in line with decreased sale. The contraction in the sale of used cars was less pronounced, counteracting the contraction somewhat. The total amount of new loans to retail customers contracted by over 25% between years, much less than the contraction in car sales, a testament to the Bank’s strong standing in this market. Landsbankinn issued a total of ISK 6.2 bn in vehicle loans to private individuals in 2019. Around one-third of the Bank's loans under vehicle and equipment financing are loans to retail customers while two-thirds are to corporates.

Landsbankinn Vehicle & Equipment Financing assists individuals and companies in the financing of new and used vehicles, motorcycles, campers, machinery and equipment.