The main role of Corporate Banking is to provide service to corporates, municipalities and institutions. Landsbankinn's Corporate Banking Service Centre is a part of the Corporate Banking division.
2016 was a good year for Icelandic industry. The economy picked up speed and economic growth was strong. Landsbankinn actively operates in accordance with its strategy to be a trusted financial partner to its customers and to provide outstanding service.
Landsbankinn has a strong position on the corporate market, with the Bank's market share measuring 33.4% at year-end 2016, up from 31.5% at year-end 2015, according to Gallup's market survey.
Examination of lending by the three large banks reveals that Landsbankinn's share in lending to corporates remains the largest, or around 40,7%.
Lending growth was moderate this year. A review of Landsbankinn's corporate loan portfolio reveals an increase in lending to development projects in the travel industry and construction of residential housing. There was significant growth in lending to the trade and service sector. The fisheries and seafood industry is currently in a strong position and, in general, debt in the sector has decreased.
Landsbankinn emphasises offering comprehensive financial services to corporates and ensures that companies have access to specialist services through the country's most extensive branch network. In that manner, Landsbankinn is a powerful partner to Icelandic industry. Landsbankinn's Customer Service Centre in Borgartún 33, which specialises in services to SMEs, has proven its worth. According to Gallup’s surveys, customers are very pleased with the arrangement of services to corporates in the capital region.
Gallup's surveys further show that Landsbankinn holds the greatest market share of all three banks in rural Iceland by a considerable margin. Landsbankinn emphasises tailoring its services to meet the varied needs of robust and diverse industry in all parts of Iceland.
Landsbankinn has over many years lead the market in construction financing as the biggest lender to new housing projects and hotel construction. There is great demand for residential housing and the Bank considers it a part of its obligation under the ideology of corporate social responsibility to support contractors building residential property.
The Bank financed 56 large construction projects managed by 47 contractors in 2016. Four of these projects were hotel construction and three centred on industrial housing. Construction of new residential housing accounts for the vast majority of projects, or 49, based on year-end figures.
The aforementioned projects include the construction of 1,839 apartments and they will enter the market in 2017 and 2018. Most of these apartments are in the capital region. The Bank also financed large projects in Selfoss, Akranes and Reykjanesbær. Of all residential housing entering the market throughout 2018, Landsbankinn finances nigh on half.
Two of the hotels financed by the Bank are in Reykjavík and two are outside the capital region. The continued increase in travellers visiting Iceland has led to a shortage of lodging facilities, especially during summer. Landsbankinn has been interested in supporting projects intended to meet this demand. This is especially important, seeing as the travel industry has become Iceland's largest foreign currency generating industry.
Landsbankinn fully intends to maintain its leading position in construction financing, both in new residential housing and further development of infrastructure for the travel industry. The Bank looks forward to participating in new and exciting projects in these fields in the near future.
Landsbankinn's history is closely related to the history of the seafood and fisheries industry in Iceland. The sector has bloomed, experienced revitalisation and fostered innovation. Landsbankinn has actively participated in these developments, through projects focused on the renewal of fishing vessels and equipment, salmon farming projects and ventures abroad.
Landsbankinn supports and participates in numerous collaborations and partnerships with companies and institutions. The Bank's experts actively engage in cluster initiatives in various sectors, such as the Icelandic tourist cluster, the geothermal energy cluster and the ocean cluster.
Landsbankinn plays an important role in the defence against cybercrime. One of the most important means of diffusing the risk of attack is to communicate information about developments in cybercrime and about available mitigating measures to companies and individuals. Cybercrime is becoming increasingly complex and advanced.
Companies who offer online services, law enforcement authorities and investigating parties must join forces to limit damages caused by this type of criminal activity. It similarly behoves companies, including banks, to provide information and advice to their customers. Landsbankinn has done so, hosting information meetings with representatives from companies and by publishing articles and information on Internet security on its website.