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Accessible, secure and personal financial service

We aim to simplify life for customers by offering more accessible, secure and also personal financial services. We offer first-rate digital solutions, while also providing customers with personal service and advice both through our strong service centre and our staff in branches across the country.

Customer satisfaction is our top priority and all services aim at enhancing it. We ask customers how they feel about our service and these measurements show high and consistent satisfaction. In 2025, overall satisfaction measured 4.7 out of 5, and satisfaction with Landsbankinn’s app measured 4.8, the same result as in the previous year. Landsbankinn topped the Icelandic Customer Satisfaction index among the three commercial banks in 2026. The Banks scored 72.3 points, 3.3 points higher than the previous year – the best result in almost 20 years.

At the end of 2025, around 131,200 individuals were active customers of the Bank, an increase of 2,800 between years. The Bank’s market share in the retail customer segment measured 40.2% at year-end and Landsbankinn remains the bank most Icelanders choose as their primary.

On-going digital advancement and simpler day-to-day finances

We continued to enhance our services across the board in 2025. Various new features were added to Landsbankinn’s app and security increased even more. The app is easy to use - handling bank business and obtaining a clear overview of finances has never been simpler.

More information about the app and digital development is provided in the chapter on Continuous development.

Robust, country-wide service network

Alongside outstanding digital solutions, our customers also have access to the country’s most extensive service network for financial and insurance services. Landsbankinn operates 34 branches and service points across the country, far more than any other financial institution. At the larger branches, ATMs are available around the clock, and in total customers can access ATMs at 43 locations around the country.

We also provide a wide range of services and high-quality advisory support through the Bank’s Customer Service Centre. In 2025, the total number of cases handled by our Customer Service Centre staff exceeded 342,000. They answered more than 214,000 calls, around 86,500 emails and held approximately 19,300 conversations with customers via the web chat on landsbankinn.is. Visits to branches exceeded 860,000, including around 90,000 visits to tellers and 187,500 visits to financial advisers.

214.057

phone calls

86.505

emails

19.332

chats online

Visits to tellers declined slightly, reflecting the fact that more customers now handle transactions themselves through self-service solutions. On the other hand, the number of remote meetings with financial advisers increased by 19%. Staff in branches in rural areas handle a large share of these remote meetings.
Miðjan is the umbrella term for a number of tasks carried out regardless of location, enabling customers to receive services from branch staff across the country. In this way, we shorten waiting times and further improve service quality. Miðjan has also contributed to strengthening branch operations and increasing job variety.

By offering outstanding digital solutions alongside access to an extensive branch network, we have strengthened the Bank’s connections with customers and communities throughout the country. Through on-going development and improved services, we will continue to offer solutions that support financial security and simplicity in finance.

Akureyri branch in new location

Landsbankinn and TM in Akureyri moved to new and modern facilities at Hofsbót 2-4 in the town centre in February 2025.

In April, the Bank’s service outlet in Seyðisfjörður was closed, but self-service equipment will continue to be available around the clock.

In August, an agreement was reached for Landsbankinn in Selfoss to move to new premises at Austurvegur 11 by the end of 2027.

More diverse savings options and increased financial flexibility

Household deposits continued to grow. Despite increased card turnover and rising consumption, household overdrafts did not increase during the year, reflecting the strong financial position of households.

As before, Smart Savings in the app remains the most popular option, as it offers the best available terms on on-demand accounts. At year-end, 78.100 customers held a savings account in the app, representing an increase of 23% compared with the previous year.

During the year, a new savings option was introduced, allowing customers to link a credit card to a savings account in the app and save automatically with every transaction. Customers can choose to save a fixed amount with each transaction or to round up transactions by an amount of their choice.

TM and Landsbankin - a solid foundation for growth

In 2025, the integration of insurance services with Landsbankinn’s retail banking services began following the Bank’s acquisition of TM, which was finalised on 28 February. Efforts focused on simplifying services and improving customer access to insurance alongside their banking. TM’s headquarters were relocated to central Reykjavík and TM and Landsbankinn branches were merged in Akureyri, Selfoss, Reykjanesbær and Vestmannaeyjar.

We began offering insurance advice in the Bank’s branches and enabled customers to purchase insurance through Landsbankinn’s app. In the app, an overview of TM insurance is now available and it is possible to receive quotes and book advisory meetings.

Emphasis was placed on training Landsbankinn employees in insurance advisory services, strengthening holistic advice for individuals and increasing opportunities for integrated sales and services. The integration of services is continuing and in 2026 the results will become even more visible.

TM and Aukakrónur

Everyone who is insured with TM gets a 1% refund in the form of Aukakrónur when paying with a card linked to the Aukakrónur system. It is also possible to pay for insurance with Aukakrónur. 

Composed and confident response to interest rate rulings

Following the Supreme Court ruling handed down on 14 October 2025 in an interest rate case against Íslandsbanki, which concerned a clause in a non-indexed residential mortgage, Landsbankinn carried out an extensive review of its offering of new residential loans.

Due to the uncertainty that arose after the ruling, mortgage applications were temporarily put on hold for a few days. We focused on completing the processing of loan commitments that had already been granted, so that the uncertainty would not disrupt real estate transactions. Landsbankinn then became the first lender to present a new residential mortgage offering on 24 October, 10 days after the ruling. Shortly before Christmas, Supreme Court rulings were issued in two interest rate cases concerning Landsbankinn. Although the terms were ruled unlawful, the Bank was acquitted of financial claims in the cases, which we believe confirms that Landsbankinn’s interest rate decisions have been objective and fair toward our customers.

Wanted to offer new ways to reduce uncertainty

“When a ruling was issued in the first interest rate case, we placed strong emphasis on responding quickly and confidently in order to reduce uncertainty and disruption in the housing market. We were pleased to be able to present changes to the offering of new residential mortgages just 10 days after the ruling.

The ruling meant that non-indexed residential mortgages with variable interest rates were required to have a fixed reference rate. We chose to have new non-indexed residential mortgages from the Bank carry a fixed interest premium on top of the Central Bank’s policy rate. With this approach, changes in the policy rate automatically lead to interest rate changes .

The situation was more complex when it came to indexed loans, as their nature prevents changes in line with the policy rate. As no such reference rate was available, we had few options other than to offer indexed loans exclusively at fixed interest rates and with long maturities, specifically up to 20 years. We offered indexed loans only to first-time buyers, a restriction introduced due to the risk the Bank assumes by granting long-term loans at fixed interest rates. With this approach, we aimed to accommodate first-time buyers, who are generally the group most in need of the lowest possible debt service. We increased the maximum loan-to-value ratio for indexed loans to 85% and stopped offering base loans plus supplementary loans, with the aim of limiting increases in borrowers’ debt service.

At the same time, we introduced a new option: fixing the interest rate on non-indexed loans for one year. These loans carry no prepayment penalty, making refinancing inexpensive. There has been considerable interest in these loans and Landsbankinn is the only lender offering this option.

As more rulings in interest rate cases were issued by the Supreme Court, uncertainty diminished, allowing us to again grant customers permission to transfer indexed loans between properties. We find that many customers still choose indexed residential mortgages, most often because of the lower debt service. We are currently reviewing the options available to us in light of the court rulings and other factors and assessing whether we can expand our offering of indexed loans. We expect this work to be completed in the near future.”

Growing partner pool and increased use of Aukakrónur

Aukakrónur have long since confirmed themselves as one of the strongest benefit system in Iceland. The system’s popularity continued to grow, with many strong partners joining us and both collection and use remained high. In total, customers collected 713 million and spent 671 million Aukakrónur when purchasing goods and services from the system’s partners. A total of 60,579 transactions were carried out using Aukakrónur, with the average amount per user around ISK 10,400, underscoring the system’s growing strength and usefulness.

Collection

Aukakrónur

731

Use

Aukakrónur

671

Partners

200+

enterprises

During the year, emphasis was placed on further developing the system through targeted initiatives aimed at increasing engagement and visibility. The Aukakrónur Day, held for the first time on 27 February, was enthusiastically received. More than 40 partners offered 20% repayment for 24 hours and the increase in transactions clearly demonstrated customers’ interest in the system. We intend to repeat the success in 2026.

The Aukakrónur Run was held for the first time during the year in cooperation with the sports club Ármann, with 500 participants. The initiative aimed to strengthen awareness of the Aukakrónur system and link it to an active lifestyle and community engagement.

During the summer months, a targeted campaign was launched in which customers aged 24 and under received double Aukakrónur. The objective of the campaign was to introduce the system more effectively to younger target groups and encourage increased usage. At the same time, special offers for Aukakrónur cardholders were reintroduced on the Bank’s website, enhancing the benefits of the system for young customers.

More customers collect Aukakrónur

The number of Aukakrónur partners continued to grow during the year, with a total of 33 new companies joining the system. These additions have made the partner network more diverse, providing even greater everyday value for customers. New partners in the year include Jómfrúin, Tokyo Sushi, Húrra Reykjavík, Flatey, Fjallakofinn and Sky Lagoon.

The Aukakrónur system is a simple, digital and transparent benefit system that has proved its worth, boosted customer engagement and strengthened ties with the Bank.

Prevented fraud or recovered funds in 75% of cases

Landsbankinn places strong emphasis on prevention and education regarding online fraud and cybercriminal activity. In November 2024, the Bank opened a dedicated fraud hotline open from 9:00 to 23:00 every day. Outside of those hours, calls are automatically transferred to the emergency number for payment cards. The year 2025 was the first full year of operation for the fraud hotline. Around ten employees share responsibility for staffing the unit, both during and outside normal opening hours. In 2025, the fraud hotline received 2,221 calls and 6,567 emails. On average, the hotline received just over six calls per day outside the Bank’s normal service hours.

During 2025, the Bank recorded a total of 1,465 fraud cases targeting customers. Of these, 374 cases (around 25%) resulted in actual financial loss, while in the remaining cases there was no loss, fraudulent transactions were stopped or funds were recovered. As before, it was primarily older people who suffered losses from cybercriminal activity. Nearly 60% of total financial losses in 2025 were incurred by customers aged 65 or older.

Landsbankinn hosted numerous educational meetings on online fraud and took an active role in public discussion and preventive efforts. Further details are presented in the chapter Sustainability and Community.

Messenger scams are most common - investment scams cause most damage

“At Landsbankinn, we place strong emphasis on prevention and education regarding online fraud and cybercriminal activity. In November 2024, the Bank opened a dedicated fraud hotline open from 9:00 to 23:00 every day, with an emergency phone number available outside those hours. The year 2025 was the first full year of operation for the fraud hotline. Around ten employees share responsibility for staffing, both during and outside normal opening hours. The fraud hotline has proven its value and we find that people are very relieved to be able to speak with someone at the Bank if they suspect they may have been the victim of fraud.

The year started with a very high volume of fraud cases, particularly those related to text messages sent in the name of the Directorate of Internal Revenue, the postal service and other companies. Yet the most common scam was the so-called Messenger fraud. These are carried out by scammers gaining access to a Messenger account and then sending messages to the person’s friends and contacts, asking for their phone numbers. A code is then texted to them, which the fraudster claims is related to a prize draw, but which is in fact a login code for electronic ID in a banking app. The most serious scams are investment scams, in which victims are deceived into investing in cryptocurrencies, shares or other assets, but where the “investments” are really nothing more than a fraud. It is in this type of fraud that the greatest financial losses occur. The reason is that these cases often involve long-standing scams that have been ongoing for many weeks or even months. The victim is typically deceived into carrying out payments through online banking and does not realize until much later that fraud has taken place. By then, it is usually too late to respond and impossible to recover the funds. In such cases, people often lose large sums of money that make a real difference to their finances.

Information and education is crucial in this area. We have also encouraged our customers to discuss cybersecurity with parents and elderly relatives, as scams are particularly targeted at older age groups who are often less confident online and may also have significant savings in their accounts. Becoming a victim of online fraud is traumatic and people need to be vigilant. If you have been subjected to fraud, it’s important to contact the Bank as soon as possible.”

Fixed-rate period ended for 4,200 customers

When interest rates were at historically low levels in 2020-2021, many borrowers took the opportunity to fix their interest rates. Interest rates could be fixed for three or five years. In 2025, fixed-rate periods ended for around 4,200 customers who had fixed their rates, covering a total of approximately 4,500 loans. By comparison, it is estimated that the fixed-rate period will end on around 1,600 residential mortgages in 2026.

The end of a fixed-rate period could lead to a significant increase in debt service. We therefore contacted all borrowers before their loans came off fixed rates to review the impact and discuss available options. Customers who anticipated facing payment difficulties were informed that they could request an interest payment cap, under which part of interest payments are deferred and instead added to the loan principal.

Savings account in Polish zloty

In February, Landsbankinn became the first Icelandic bank to offer a savings account in Polish currency, the zloty, which was very well received by customers of Polish origin and by those who wish to hold their savings in different currencies. Many of the Bank’s customers are Polish-speaking and we place strong emphasis on providing them with high-quality service. The Bank employs several Polish-speaking service representatives and both the app and online banking have long been available in Polish. In addition, various information is accessible in Polish on the Bank’s website under a dedicated domain, landsbankinn.pl. Around the turn of the year, approximately 24,000 online banking users had their interface set to Polish.

Processed large-scale chargebacks quickly and effectively

The use of payment cards is an important part of everyday finances for most individuals and Landsbankinn places strong emphasis on responsible service, clear processes and trustworthy communication with cardholders. In 2025, these aspects were put to the test due to a large number of chargeback cases following the bankruptcy of airline Play. In total, around 5,600 chargebacks were registered, including approximately 1,700 disputes, all of which were handled in accordance with card scheme rules and the Bank’s established procedures.

To respond to the situation, claims were prioritized, work was carried out in a structured manner and communication with cardholders was enhanced. Where possible, a decision was made to pay outstanding chargeback amounts while cases were still being processed, subject to possible disputes. These measures reduced uncertainty and ensured that cardholders had access to their funds while the cases were under review.

Support for the energy transition

Despite increased sales of new passenger cars, which rose by 42% between years, individual car financing at Landsbankinn declined slightly during the year, amounting to approximately ISK 14.6 billion, compared with ISK 15.6 billion the previous year. This development reflects ongoing changes in market conditions and consumer purchasing behaviour.

Landsbankinn continues to emphasize supporting the energy transition in transport by offering customers more favourable terms when purchasing environmentally friendly vehicles, including electric cars. The share of the Bank’s car financing for electric vehicles amounted to around 16% at year end, in line with trends in new vehicle registrations in the market.

It is expected that the proportion of financing for electric vehicles will increase in the coming years, alongside continued energy transition in transport and an expanding supply of environmentally friendly vehicles. In this way, the Bank supports sustainable development and objectives aimed at reducing emissions in transport.