Atlantica - 01.09.2004, Blaðsíða 78

76 A T L A N T I C A
ATLANTICA BUSINESS SECTION
Atlantica: Why has Landsbanki experienced such record growth?
Halldór J. Kristjánsson: The economic situation has been favourable.
The GDP growth in 2003 was about 4% and is forecasted to be 4.5% in 2004.
Landsbanki has been successful in exploring new opportunities and today
68% of ICEX-listed (Icelandic Stock Exchange) corporates are banking
with Landsbanki.
Atlantica: The Icelandic market is relatively small. Explain how
Landsbanki is expanding its opportunities. What does the future hold for
Landsbanki?
HJK: Icelandic growth has secured Landsbanki as the premier bank in
Iceland. The Bank is the strongest in retail banking and deposits with
approximately 30% market share. Landsbanki will continue to emphasise
comprehensive retail banking services along with increased activities in
investment banking and asset management. There will be fewer opportu-
nities domestically than we have seen in the past 18 months.
Diversification will be strengthened by organic expansion in Luxembourg
and London. Furthermore, Landsbanki is increasing operations abroad,
through acquisitions, increased direct lending and investment banking
operations. The Chairman’s stated goal is that within 3 years at least 50%
of revenues of the Group stem from international operation.
Atlantica: What foreign markets look the most promising for
Landsbanki?
HJK: In looking for investment opportunities abroad Landsbanki’s main
focus has been the UK market. Recently the targets have been redefined
to include other countries within Northern-Europe and also larger oppor-
tunities than have been explored before. The Bank has increasingly resort-
ed to the European Capital markets to fund its increased international
activities. Landsbanki has raised above Euro 1,500 million in 2004 and is
expanding its geographic outreach to include France, Spain and Italy.
Atlantica: Now that the privatisation of Iceland’s financial sector is com-
plete, what are the changes you expect to see in the Icelandic banking
sector?
HJK: After the consolidation of Kaupthing and Bunandarbanki and new
legislation hindering consolidation with the Savings Banks there are fewer
opportunities left. There are still some smaller financial entities that could
be acquired and merger between banks and insurance companies are
possible. Further streamlining of the branch network system is possible.
The number of bank branches in Iceland remained unchanged between
1997 and 2003 while electronic internet banking increased from 10 to 50
percent.
Under new ownership and with new management
initiative Landsbanki (The National Bank of Iceland)
has overseen record profitability in the past six
months, doubled in size in the last 18 months and
has turned increasingly to the international market.
Atlantica magazine met with
Halldór J. Kristjánsson, the group managing
director and CEO of Landsbanki to hear his
perspectives on the development
of the Icelandic banking sector.
RECORDING RECORD PROFITS
INTERVIEW
049 I-site ATL 504 24.8.2004 12:19 Page 76