Landsbankinn, an Icelandic lender, reported higher nine-month profit alongside rising impairment charges, which it connected to a weaker construction outlook amid financing and property-sale pressures.
Net profit after tax for Jan. 1-Sept. 30, 2026, was ISK 33.128 billion, compared with ISK 29.455 billion in the same period of 2025. Net interest income rose to ISK 58.271 billion from ISK 49.369 billion. The bank attributed the increase mainly to inflation-related effects, growth in its balance sheet and refinancing of older borrowing.
Net impairment charges on financial assets increased to ISK 3.331 billion from ISK 2.939 billion. Landsbankinn linked the higher charges mainly to a weaker outlook in construction, which it associated partly with high interest rates and longer property marketing times. Its report said a few companies, mainly in construction, were moved to Stage 3 during the quarter after their credit quality deteriorated.
CEO Lilja Björk Einarsdóttir said high borrowing costs and slower property sales are raising construction companies’ financing expenses and putting pressure on their equity. The bank reported that retail-loan quality remained high.
Third-quarter profit was ISK 11.054 billion, slightly below the ISK 11.133 billion reported a year earlier. Landsbankinn estimated that its July sale of a 47.9% stake in Greiðslumiðlun Íslands ehf. to Síminn hf. contributed about ISK 1.1 billion to the quarter’s financial results.
Net fee and commission income was ISK 9.161 billion, compared with ISK 9.184 billion a year earlier. Insurance service result increased to ISK 2.136 billion from ISK 1.747 billion, while the cost-income ratio improved to 30.5% from 33.2%.
At Sept. 30, total assets stood at ISK 2,584 billion. Customer loans were ISK 1,966.849 billion and customer deposits were ISK 1,499.328 billion. The total capital ratio was 25.0%, against a 20.0% minimum requirement. Landsbankinn reported nine-month return on equity of 13.3% and expects 11.5%-12.5% for full-year 2026. Its financial calendar lists the 2026 annual results for Feb. 4, 2027.
