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Better overview and effective savings 

In 2025, increased activity in financial markets coincided with customers placing greater emphasis on targeted and well-informed investment decisions. We focused on supporting customers with solutions that encourage investing, promote financial well-being and on being there for companies and individuals at all stages of the investment and savings lifecycle. This was reflected in various innovations and increased activity in asset management and brokerage, enhancing opportunities and delivering even better service for customers.

Turnover in equity and bond markets contracted by 7% yet Landsbankinn’s total turnover grew by 35%, mainly in bonds but also to a lesser degree in equities.

Strong in asset management and brokerage 

Assets under management grew during the year, as did activity in securities trading, driven by increased use of digital solutions and a more diverse product offering for individuals, companies and professional investors. At year-end 2025, assets under management with the Group amounted to ISK 936 billion.

Year-on-year growth:

Assets under management

Individual equity purchases

15%

Equity trading among individuals

52%

Customers continued to make use of self-service solutions, with the self-service ratio exceeding 80% for securities trading and pension savings in the app and online banking at year-end.  

Focus on the customer, a clear overview and effective service 

Emphasis was placed on enhancing the quality and convenience of the digital experience in the app and online banking through improved information provision, better overviews and clearer presentation. This supported increased use of self-service solutions and more active participation by individuals in managing their own investments.  

Developments during the year reflect growing customer trust and the Bank’s strong position in the domestic financial market. 

During the year, important innovations were introduced that strengthen services for investors and companies: 

New in digital solutions  

Securities data available via the Bank’s API marketplace allows customers to get securities positions, portfolio returns and transaction movements directly to their accounting systems through the Bank’s marketplace, simplifying reconciliation and increasing automation in financial processing. 

Push notifications on trading in the app allow customers to track when trades are approved, rejected or cancelled. 

Strong position and increased participation by younger customers in pension savings 

Pension savings continued to be a strong component of the Bank’s services. The number of new supplementary pension savings agreements among customers aged 18-24 increased by 25% during the year, and by approximately 150% among customers aged 16-17. This growth reflects rising awareness of the importance of saving, the success of targeted education and accessible digital solutions. Overall, supplementary pension savings increased by 5.7% between years.

At year-end, a new investment option was launched under Landsbankinn’s supplementary pension savings, investing exclusively in domestic equities. This expands the Bank’s range of investment options for supplementary pension savings and increases customers’ flexibility to tailor their own investment choices.

A major marketing campaign was launched going into summer, with a focus on introducing the benefits of supplementary pension savings to younger generations. The campaign was highly successful, as reflected in the increase in agreements among those age groups.

Fantastic results in supplementary pension campaign

"This summer, we launched a major marketing campaign to promote the benefits of supplementary pension savings, with a particular focus on those who are just entering the job market. We wanted to encourage more young people to take advantage of this fantastic savings option. We believe it is very important to start using this savings opportunity from the outset, as supplementary pension savings offer many advantages for young people.

It is an excellent form of saving overall: you receive an employer contribution equivalent to a pay rise and it can of course be used tax-free for the purchase of a first home.

Our advertising focused mainly on social media and we ran a promotion in which participants could win 100,000 Aukakrónur by opening and contributing to a supplementary pension savings account over the summer. More than 2,000 people participated and five lucky winners got Aukakrónur that they can use with our numerous and great partners. We also made use of new communication channels, including in-app banners and sent in-app messages and mobile notifications tailored to individual customers. Parallel to these campaigns, branch staff called customers in the 18-24 age group who were not yet taking advantage of supplementary pension savings. The initiative exceeded expectations. Pension savings can seem complicated and customers appreciate guidance when choosing an option and completing an agreement.

The results were excellent: In 2025, new registrations for supplementary pension savings among people aged 18-24 increased by 25% year-on-year, while registrations among 16-17-year-olds increased by 150%!

It is clear that young people are increasingly recognizing the benefits of this advantageous savings option. Young customers are pleased with initiative from their Bank and also value the fact that no sales commissions are paid to staff from their savings - everything goes directly into returns."

Education pays dividends  

We continued to host educational events with a focus on pension matters, regular savings and cybersecurity. The objective is clear - to ensure that more people have the knowledge and confidence to make informed decisions and to take advantage of the opportunities offered by structured, long-term saving. 

Better terms and continued product development 

In September, a significant reduction was made to fees on transactions in Landsbréf mutual funds, making fund investing more favourable for the Bank’s customers. This change supports regular saving and enhances the long-term competitiveness of the funds. 

Looking ahead, the Bank will continue to build on this strong position through personalised services, increased self-service options and targeted development of solutions that support long-term saving and customers’ financial well-being. 

Broad fund offering and strong performance at Landsbréf

Landsbréf hf., the Bank’s subsidiary, performed very well in 2025. In general terms, Landsbréf’s operation is twofold, i.e. fund management on the one hand and asset management on the other. The performance of funds is always largely determined by conditions in the markets in which they invest. It is fair to say that conditions in the domestic securities market were challenging during the year. Inflation did not decline as much as expected at the beginning of the year and although the Central Bank of Iceland cut policy rates by 125 basis points over the year, hopes had been that greater progress would be made in bringing inflation under control and that interest rates would fall more than ultimately proved to be the case. The performance of funds and portfolios under management by Landsbréf was satisfactory during the year, taking market conditions into account and also in comparison with competitors in the market.

Overall returns in the Icelandic equity market were weak for yet another year, despite optimism at the start of the year, while foreign equities generally delivered good returns. Landsbréf’s bond funds generally delivered solid returns compared with competitors and the same can be said of Landsbréf’s balanced funds.

In the area of specialised investments, private equity funds, innovation funds and secured loan funds generally performed very well. During the year, operations began of two new private equity funds: Horn V slhf., an ISK 15 billion private equity fund that will invest in Icelandic businesses, and SÁ Horn slhf., a collective investment fund by several strong professional investors in Styrkás hf. At year-end, a decision was made to extend the life of the private equity fund Landsbréf – Icelandic Tourism Fund slhf. by two years.

Landsbréf managed 43 funds at year-end 2025, both UCITS and AIFs. Landsbréf offers a varied selection of funds and most investors can find options and opportunities that meet their needs.