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More on cookiesManagement and governance
Good governance forms the foundation for solid relations between shareholders, the Board of Directors, executives, employees, customers and other stakeholders and encourages objectivity, integrity, transparency and responsibility in the management of the Bank.
The Board of Directors is elected at the AGM for a one-year term. Seven directors and two alternates are elected.
The Board of Directors is ultimately responsible for the Bank’s activities as provided for by law, regulations and its Articles of Association. The Board of Directors formulates the Bank’s general strategy and shall ensure that the Bank’s organisation and activities are conducted properly. The Board of Directors also monitors the Bank’s general activities and ensures that control of accounting and financial management is satisfactory.
There are three sub-committees to the Board of Directors: the Audit Committee, the Risk Committee and the Remuneration Committee. Amongst other duties, the sub-committees prepare the Board’s discussion of certain aspects of the Bank's activities and follow up on related matters.
The Ministry of Finance and Economic Affairs manages the State’s holding in the Bank on behalf of the National Treasury.
Executive Board
The Executive Board is a forum for consultation and decision-making by the CEO and managing directors. The Executive Board sees to strategy formulation and shall ensure that Landsbankinn's operations accord with current laws and rules at each time. In addition, the CEO has appointed four cross-disciplinary standing committees, comprised of managing directors and other managers, with the aim of ensuring collaboration and implementation of the Bank's strategy. These are: the Credit Committee, the Risk & Finance Committee (RAFC), the Operational Risk Committee and the Project Committee.
Corporate Governance Statement
The Bank complies with the Guidelines on Corporate Governance published by the Iceland Chamber of Commerce, Nasdaq OMX Iceland and the Confederation of Icelandic Employers, which entered into effect on 1 July 2021.
The Corporate Governance Statement, published alongside the Bank’s annual financial statement, reviews the main aspects of risk management and internal control, the election and activities of the Board of Directors and executive management.
Organisation of Landsbankinn
Landsbankinn’s organisation aims to ensure solid and effective operation while creating opportunities for successful collaboration between departments and groups. Emphasis is placed on ensuring that employees can cooperate on projects across departments and divisions, sharing and enjoying the benefits of diverse expertise. We work as a team, guided by the interests and satisfaction of our customers.
Individuals
Personal Banking provides all services to private individuals, including the development of digital solutions. The focus is on providing first-rate service based on leveraging the Bank’s data resources. We want our customers to receive personal advice in our branches and outlets and enable them to take care of all main banking business using digital service channels. Service to small and medium-sized companies in rural Iceland is also handled by Personal Banking, in close collaboration with Corporate Banking.
Corporates
Service and financing for corporates, municipalities and institutions lies with the Corporate Banking division, which is sharpening its focus on digital service, especially for small and medium-sized enterprises, and self-service solutions. Specialised account managers attend to the needs of companies and legal entities in all sectors. Corporate Banking also provides comprehensive and professional advice on the purchase, sale and merger of companies.
Asset Management & Capital Markets
Asset Management & Capital Markets offers high-net worth individuals, companies and investors assistance in finding the right investment and asset development solutions. The division offers extensive services in the field of asset management, both private banking and professional investor services, in addition to brokerage of securities, currency and derivatives for professional investors and larger customers. Emphasis is placed on personal service, responsible advice and informed decisions.
Finance
The Bank’s funding, liquidity management and market making all fall under the scope of the Finance division. Settlement, accounting and business plans are also under Finance, along with loan administration and transaction services, and sustainability.
Information Technology (IT)
The IT division is responsible for the operation, security and development of Landsbankinn’s digital infrastructure. Its activities are based on multidisciplinary teams and collaboration with the Bank’s other units in order to provide and develop first-rate tech solutions and digital services. There is a strong focus on leveraging data in all the Bank’s activities and to ensure that the Bank continues to lead the way in utilising information technology in the domestic financial market.
Risk Management
Risk Management is responsible for the effectiveness of the Group’s risk management framework. The division is also responsible for information disclosure on risk exposure to various departments and units within the Bank, and external regulators.
Communication & Culture
The division is responsible for external and internal communication and plays a key role in shaping and fostering the Bank’s corporate culture. The division incorporates human resources, marketing, education for employees and customers, PR, economic research, property and equipment, security and canteen operation.
Compliance, Legal Services and Business Strategy & Process Management
Three departments operate across the Bank and are directly under the CEO. Compliance carries out risk-based internal control to ensure that managers and employees carry out their duties in accordance with the policies, rules and processes the Bank has adopted. Legal Services offers legal council to all departments and divisions and works to ensure that the Bank's activities accord with laws and regulations. Business Strategy & Process Management supports the CEO in strategy formulation, creates business plans, furthers the Bank's goals and maintains a clear and holistic view of operations. Jointly, these units participate in shaping and implementing a clear strategy for the future, enhance good corporate governance and support the Bank complying with both external and internal rules at each time.
Internal Audit
Internal Audit is an independent and autonomous function directly under the Board of Directors in the organisational chart. The role of Internal Audit is to improve and protect the Bank’s value with risk-focused and objective verification, consultation and insight. Internal Audit evaluates and improves the effectiveness of risk management, control measures and governance processes through systematic and disciplined practices.
Service and financing for corporates, municipalities and institutions lies with the Corporate Banking division, which is sharpening its focus on digital service, especially for small and medium-sized enterprises, and self-service solutions. Specialised account managers attend to the needs of companies and legal entities in all sectors. Corporate Banking also provides comprehensive and professional advice on the purchase, sale and merger of companies.
Assets sold in 2025
Landsbankinn has adopted a clear policy on the sale of assets, intended to promote transparency and credibility in the sale of assets and build confidence in the Bank.
Securities and other financial instruments listed for trade on a registered market are sold on the market and that process is considered an open sale process. Such transactions are excluded from the table listing sold assets.
In 2025, Landsbankinn sold its old building at Austurstræti 11 in Reykjavík along with the three adjoining buildings for a selling price of ISK 2,850 million. The Bank sold 110 appropriated assets for the total amount of ISK 263 million. The total sales value of the assets sold by the Band during the year was ISK 3,119 million.
| Assets sold in 2025 | Number | Total sales value |
|---|---|---|
| Building sites | 1 | 5,500,000 |
| Commercial housing | 1 | 2,850,000,000 |
| Building sites for vacation housing | 4 | 9,650,000 |
| Other | 1 | 7,500,000 |
| Vehicles and equipment | 106 | 240,038,201 |
| Total | 113 | 3,118,988,201 |
At year-end 2025, sales processes for holdings in 11 unlisted companies were on-going. These holdings are variously owned by Landsbankinn or Hömlur fyrirtæki ehf., a subsidiary of the Bank. Information about these holdings has been disclosed on the Bank's website.
Assets for sale at year-end 2025
A total of 28 assets appropriated by the Bank were held for sale as at 31 December 2025. Their book value was around ISK 63 million.
| Appropriated assets undergoing sale process at year-end 2025 | |
|---|---|
| Building sites for residential apartments and commercial housing | 2 |
| Single-family home | 1 |
| Building sites for vacation housing | 23 |
| Land | 2 |
| Total | 28 |