Results of the AGM of Landsbankinn 2020
The Annual General Meeting of Landsbankinn was held on 22 April 2020 at the Bank’s headquarters in Austurstræti 11, Reykjavík. At the AGM, Helga Björk Eiríksdóttir, Chairman of the Board of Directors, presented the report of the Board of Directors, and Lilja Björk Einarsdóttir, CEO, spoke of the Bank’s solid standing and good performance in 2019.
The AGM was scheduled to be held on 27 March but following restrictions on gatherings set to retard the spread of Covid-19, the meeting was postponed until today. Shareholders were invited to attend the meeting via teleconferencing equipment.
Report of the Board of Directors
The Bank’s profit in 2019 was ISK 18.2 billion. Return on equity was 7.5% (9.2% having regard for the bank tax) and the cost-income ratio was 42.6%. The Bank’s equity at year-end 2019 amounted to ISK 248 million and its capital ratio was 25.8%.
In the report from the Board of Directors, Helga Björk Eiríksdóttir, Chairman of the Board, characterised efforts to hinder the spread of Covid-19 in Iceland as successful. She noted the importance of achieving equal success in tackling the economic consequences of the pandemic and stressed Landsbankinn’s intention to participate in the effort in various ways. Helga described Landsbankinn’s financial position as strong and said that the action taken by the authorities and the Central Bank had enabled the Bank to better support its customers. “Landsbankinn’s financial standing is very strong. Action undertaken by the government and the Central Bank is extremely useful and enables the Bank to better support its customers. One of the most important roles of a commercial bank is to buffer shocks to the economy and we are optimistic about our ability to handle coming challenges,” said Helga.
Operation and position of Landsbankinn
In her presentation of the Bank’s results for 2019, Lilja Björk Einarsdóttir, CEO, spoke of good operating results and growing use of the Bank’s digital solutions by both corporate and retail customers. Landsbankinn has held the highest market share in the retail market for six years running and continues to lead in the corporate market. Increased customer satisfaction is reflected in that the Bank topped the Icelandic Performance Satisfaction Index for banks.
Lilja Björk Einarsdóttir, CEO of Landsbankinn: “The Bank’s 2019 results were very good and the Bank is well placed to face the great economic uncertainty that now prevails. Landsbankinn has endeavoured to assist its customers who are experiencing difficulties because of the Covid-19 pandemic. Most significant among action taken is the up to 6-month payment holiday. Already, 1,622 customers have deferred payment; 1,062 individuals and 560 companies, 522 thereof small and medium sized. Only 19 customers did not meet requirements for a payment holiday, i.e. had been in arrears over a longer period before the pandemic.
At the same time, the Bank has been focused on ensuring that customers can access all banking services without having to visit a branch, which have been closed temporarily to contribute to disease prevention. The entire application process for Covid-19 solutions is digital. Detailed information sites have been set up about the numerous solutions available and customers can request telephone consultations with the Bank’s advisors if they need assistance. In the vast majority of cases, customers can use the Bank’s self-service solutions, change their overdraft, take out Aukalán supplementary loans, smooth credit card bills across a longer period and other options intended to assist individuals who suffer unexpected income loss.”
Unchanged dividend policy
Before the outbreak of Covid-19, the Board of Directors intended to propose that the AGM approve a motion to pay dividend to Landsbankinn’s shareholders in the amount of ISK 9.5 billion for the financial year 2019. In light of the current economic uncertainty and in line with directions from the Central Bank of Iceland, the Board of Directors reconsidered this proposal and proposed to the AGM that no dividend be paid for the year 2019. The proposal was approved. The Bank’s dividend policy remains unchanged. It provides that Landsbankinn shall aim to pay the lion’s share of the previous year’s profit in dividend to shareholders. Since 2013, the Bank has paid ISK 142 billion in dividend.
For the same reasons, the Board of Directors did not propose that the AGM authorise a buy-back programme of own shares as planned and the proposal was approved.
The AGM also approved unchanged remuneration to Directors of the Board and it has now remained unchanged for the past two years.
Election to the Board of Directors of Landsbankinn
The following persons were elected regular members of the Board of Directors:
- Helga Björk Eiríksdóttir (formaður)
- Berglind Svavarsdóttir
- Einar Þór Bjarnason
- Guðbrandur Sigurðsson
- Hersir Sigurgeirsson
- Sigríður Benediksdóttir
- Þorvaldur Jacobsen
The following persons were elected alternates to the Board of Directors:
- Guðrún Ó. Blöndal
- Sigurður Jón Björnsson
Further information on Landsbankinn's AGM