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A T L A N T I C A 87
expectations for this bank and the new
projects we will develop through it."
Landsbanki has been a majority
shareholder in Heritable Bank for over
a year now, and in that time Heritable
has succeeded in becoming an impor-
tant part of the corporation, bringing
in important revenue. Landsbanki's
shares in Heritable Bank are valued at
249 million Icelandic krónur and
Heritable Bank brought in 14 percent
of Landsbanki's total earnings in 2001.
Heritable Bank's speciality, which is
consulting and financing of residential
construction projects, showed a con-
siderable increase in turnover this
year, due to the booming British real
estate market. Interest income and fee
income increased by 20 percent over
the year 2000.
Heritable Bank is renowned for its
expertise in the field of real estate
financing and Landsbanki is now par-
ticipating directly in the bank's project
loans. The co-operation between the
two banks has made it possible for
Heritable Bank to take on larger pro-
jects and has strengthened the Bank's
position.
INTERNATIONAL
ACKNOWLEDGEMENTS
Two recent reports show that Iceland's
competitive position on the interna-
tional market has never been stronger.
"Iceland has the most advantageous
tax environment of all the OECD coun-
tries," says Kristjánsson. "According to
a report by the World Economic Forum,
Iceland's competitiveness increased
between the years 2000 and 2001.
Iceland is now in 16th place, having
been in 17th place in the year 2000 and
22nd place in 1999. Also, in the World
Competitiveness Yearbook, Iceland is
placed 13th in international competi-
tiveness."
In the year 2002, Landsbanki aims to
target further international growth by
building on the platform provided by
Heritable Bank. Landsbanki has never
been in a stronger position to take part
in new financial and growth opportu-
nities in Iceland or abroad. "We hope
that recent economic developments,
including the lowering of corporate
taxes from 30 percent to 18 percent,
will afford new growth opportunities
for Landsbanki," says Kristjánsson.
Landsbanki was chosen as both the
'Bank of the Year' and 'Best Bank in
Iceland' by financial magazines The
Banker and Global Finance. This is the
third year running that Landsbanki has
been voted 'Best Bank' by Global
Finance, and the first time that it has
been voted 'Bank of the Year' by The
Banker. As Kristjánsson confirms,
"These nominations, which are built
on achievements in financial planning,
leadership, technical advances and
quality in services, underline the trust
which Landsbanki has gained interna-
tionally as Iceland's foremost bank."
www.landsbanki.is
A NEW TIDE
Heritable Bank is situated in central London, in the heart of Europe’s trading centre.
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