11

Landsbanki Presentation

IACC, 13 March 2008

A Growing European Bank Sigurjón Þ. ÁrnasonCEO Landsbanki

2

Disclaimer

• The information presented herein (the Information) is based on sources which Landsbanki regards as dependable. Furthermore, the Information and views presented are based on publicly available information gathered at the time of writing and may change without notice. While Landsbanki Íslands hf. has given due care and attention to the preparation of this presentation, it nevertheless cannot guarantee the accuracy or completeness of the information, no accept responsibility for the accuracy of its sources. Landsbanki Íslands hf. is not obliged to make amendments or changes to this publication should errors be discovered or opinions or information change. Note especially that projections may vary from actual results in both positive and negative directions and are subject to uncertainty and contingencies, many of which are beyond the control of Landsbanki Íslands hf.

• The Information should not be interpreted as advice to customers on the purchase or sale of specific financial instruments. Landsbanki bears no responsibility in any instance for loss which may result from reliance on the Information.

• Landsbanki holds copyright to the Information, unless expressly indicated otherwise or this is self-evident from its nature. Written permission from Landsbanki is required to republish the Information on Landsbanki or to distribute or copy such information. This shall apply regardless of the purpose for which it is to be republished, copied or distributed. Landsbanki’s customers may, however, retain the Information for their private use.

• Transactions with financial instruments by their very nature involve high risk. Historical price changes are not necessarily an indication of future price trends. Investors are encouraged to acquire general information from Landsbanki or other expert advisors concerning securities trading, investment issues, taxation, etc. in connection with securities transactions.

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A Growing European Bank

ISK (bn) USD

Pre-tax profit 45.6 717m

After-tax profit 39.9 629m

Pre-tax ROE 31%

After-tax ROE 27%

Cost-income ratio 52%

Total assets 3,058 48.7bn

CAD 11.7%

Tier I 10.1%

Core Income by location

• As a member of the European Economic Area (EEA) since 1994, Iceland has implemented all the EC directives on banking, insurance and securities trading

• With its strong fiscal position, Iceland Sovereign has the highest possible credit rating from Moody’s at Aaa

• Landsbanki the market leader in Iceland with 120 years of operations since establishment in 1886 and headquartered in Iceland

• Leader in all core banking areas in domestic market with over 30% market share and the most extensive branch network

• Operations in major financial centers of Europe, thereof UK operations most extensive, focused on small and medium sized corporates

• Diversified asset base of excellent quality underpinned by conservative and centralised lending policies

• Highly capitalised with appropriate downside protection• Deposit growth has transformed the balance sheet and

supports strong liquidity position

ISK / USD 1 Jan 2007 ( 67.54); 31 Dec 2007 (62.80); Average 2007 (63.55); Average Q4 2007 (61.41); 28 Jan 2008 (64.33)

Key Figures from 2007 Annual Accounts

26%

50%

26%

16%

8%

100%

Iceland

UK / Ireland

Lux

Nordic &Cont.Europe

1997 2007

Rating Moody´s Fitch

Long-term A2 A

Short-term P-1 F1

4

5

Extensive Distribution Network to Deliver Targeted Financial Services Based on Local Expertise

5■■Hong Kong

26■■■Norway

Capital Markets

Corporate Finance

Treasury & Deposits /

FX & Derivatives

Corporate Banking

Asset Man. / Private Banking

Retail Banking

Speciality Finance

Positions(2,640)*(+100 in

Newcastle)

Iceland ■ ■ ■ ■ ■ ■ 1,460

UK ■ ■ ■ ■ ■ 468

Ireland ■ ■ ■ 101

Luxembourg ■ ■ ■ 135

Germany ■ ■ ■ 57France ■ ■ 142

Spain ■ ■ 43

Italy ■ 28

Switzerland ■ ■ ■ 89

Netherlands ■ ■ ■ ■ 36

US ■ ■ 23

Canada ■ ■ 9

Finland ■ ■ 18

■

■

Fully Operational

Start-up within 24 months

Focus on Mid-Cap corporates in Europe USD 150m – 3bn *31.12.2007

6

Transformation of Landsbanki Following Privatization

71745.51.5Profit before taxes

313.6*

34.7

2,651

17

110.0

1,421.0

2,023.0

3,058.0

2007

4,608*13Market cap

5461.5Core Profit before taxes

978Number of employees

1Number of countries

1,7317.1Net operating income

22,63664.7Total deposits

32,21293.7Total loans to customers

48,691124.8Total assets

Million USDChange1997

ISKbn

+ 25x

+ 22x

+ 22x

+ 15x

+ 17x

+ 3x

+ 23x

+ 24x

* 11.03. 2008

+ 30x

7

Net Interest, Fees & Commission Income

Net interest income by country

ISK million

10%

8%

26%56%

Iceland

Nordic &Continental Europe

Luxembourg

UK / Ireland9,33114,734

22,996

41,491

54,052

2003 2004 2005 2006 2007

6,1168,891

16,726

28,366

39,369

2003 2004 2005 2006 2007

36%

29%

6%

29%

Net fees and commission income by country

Nordic &Continental Europe

Luxembourg

UK / Ireland

Iceland

$ 851m

$ 619m

8

Other Operating Income

Breakdown of other operating income by origin

ISK million

-4,000

-2,000

0

2,000

4,000

6,000

8,000Q1 Q2 Q3 Q4

Equities

Fixed income & credit

Foreign exchange

2003 2004 2005 2006 2007

3,535

9,842

21,257

19,568

16,605

$ 261m

2007 Q4 Q3 Q2 Q1

Equities $ 283m 18,014 707 2,714 6,438 8,156Fixed income & credit $ -128m -8,141 -4,747 -3,244 -203 52Foreign exchange $ 108m 6,889 4,223 2,356 -297 607Other $ -2m -158 -250 92 16 -15

16,605 -68 1,918 5,955 8,799

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Fixed Income and Structured Credit Exposure

Corporate Synthetic CDO No exposure

ABS

Listed bond portfolio

No exposure

As part of its liquidity strategy/reserves, Landsbanki has invested USD 6.6bn in listed bonds (mainly Floating Rate Notes). The highly rated portfolio consists mainly of financial and government paper.

Monolines No exposure

SIVs, conduits & liquidity lines No exposure

4%NR

4%BBB

16%A

44%AA

32%AAA

9%Corporate bonds

25%Government bonds

66%Financials

Total return swaps

Landsbanki uses Total return swaps (TRS) which are marked to market to manage part of its portfolio of acquisition and leveraged finance participations

FX Position In order to hedge its equity against ISK volatility, in H2 2007 Landsbanki built up a positive FX balance equivalent to ISK 114bn (USD 1.8bn).

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Cost-Income Ratio and Return on Equity

21%

57% 56%

40%

31%

18%

50%

36%

27%

46%

2003 2004 2005 2006 2007

ROE before taxes ROE after taxes

58%

53%

48%

58%

66%

57%

43%

34%

43%

52%

2003 2004 2005 2006 2007

Core Cost-Income Ratio Cost-Income Ratio

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Continuously Improved Loan Quality

2,46%

3,17%

1,81%

0,97%

0,66%0,51%

0,24%

0,29%0,36%0,31%0,23%0,22% 0,27%0,21%

0,28% 0,35%

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

3,50%

31.1

2.20

01

31.3

.200

230

.6.2

002

30.9

.200

2

31.1

2.20

0231

.3.2

003

30.6

.200

3

30.9

.200

3

31.1

2.20

03

31.3

.200

4

30.6

.200

4

30.9

.200

4

31.1

2.20

0431

.3.2

005

30.6

.200

5

30.9

.200

5

31.1

2.20

05

31.3

.200

630

.6.2

006

30.9

.200

6

31.1

2.20

06

31.3

.200

7

30.6

.200

7

30.9

.200

7

31.1

2.20

07

> 90 days1.31%

0.73%

0.58%

0.37%0.32%

2003 2004 2005 2006 2007

Impairment on loans & advances

• Impairment on loans and advances decreasing

• Total overdue loans are at an historical low

• Strong allowance account

Provision account at 31 Dec 2007 21,981 $ 350m 1.02%

Total paym. overdue 0 days / Loans 9,481 $ 151m 0.47%Total paym. overdue past 90 days / Loans 4,911 $ 78m 0.24%

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Balance Sheet – assets as of 31 Dec 2007

ISK billion

Iceland58%UK & Ireland

20%

Other European countries

15%

US and CAN/other countries

7%

Lending by country

Other0.2%

Individuals18.6%

Construction and

manufacturing16.0%

Services43.0%

Public entities1.2%

Retail trade12.0%

Fisheries8.5%

Agriculture0.6%

Lending bysector

31 Dec 31 Dec Change %2007 2006

Cash and cash balances with Central Bank $ 1,299m 82 32 50 158%Loans and advances to financial institutions $ 2,595m 163 216 -53 -24%Loans and advances to customers $ 32,212m 2,023 1,438 584 41%Bonds and debt instruments $ 5,775m 363 170 193 114%Shares and equity instruments $ 1,026m 64 49 15 31%Hedged securities $ 2,806m 176 105 71 67%Derivatives held for trading $ 799m 50 38 12 31%Derivatives held for hedging $ 139m 9 10 -2 -17%Intangible assets $ 441m 28 14 13 93%Other assets $ 1,601m 101 100 1 1%Total assets $ 48,691m 3,058 2,173 885 41%

Part of Icelandic portfolio is foreign currency denominated

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Balance Sheet – liabilities & equity as of 31 Dec 07

ISK billion

$ 22.6bn

Deposits from customers

152218

334

683

1,421

2003 2004 2005 2006 2007

About 3/4 of loans to customers

1/2 of total assets

31 Dec 31 Dec Change %2007 2006

Deposits from credit institutions $ 5,381m 338 141 197 139%Deposits from customers $ 22,636m 1,421 683 739 108%Borrowing $ 13,313m 836 1,015 -179 -18%Subordinated loans $ 1,782m 112 90 22 25%Other liabilities $ 2,649m 166 95 72 75%Minority interest $ 64m 4 5 -1 -23%Shareholder equity $ 2,867m 180 144 36 25%Total liabilities and equity $ 48,691m 3,058 2,173 885 41%

0%

20%

40%

60%

80%

100%

120%

140%

160%

JPM

orga

n

Citi

grou

p

Bof

A

Wac

hovi

a

Bar

clay

s

TD

RB

S

Ang

lo Ir

ish

Lloy

ds T

SB

SE

B

Land

sban

ki

RB

C

Dan

ske

Ban

k

Alli

ed Ir

ish

B. &

Bin

gley

Nor

dea

A. &

Lei

cest

er

Com

mer

zban

k

Kau

pthi

ng

Glit

nir

Source: company reports 2007

Deposits / Loans

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Strong Liquidity Position and Light Repayment Profile

*ISK maturing debt not included

Maturity profile of outstanding long-term debt as of 6 February 2008

• Landsbanki exceeds its policy to maintain a liquidity position (net of haircuts) sufficient to sustain at least 12 months non-access to capital markets by a comfortable margin based on:

– continued current business activitity

– very limited recourse to other assets eligible for sale/securitisation

• Liquid assets USD 13,216m as of 31 Dec 2007

• Light repayment schedule going forward, only USD 1,097m maturing in 2008

USD m

1,918

4,670

7,479

5,927

2,208

1,097

3,737

2,3582,622

1,1481,482

938

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Rai

sed

2003

Rai

sed

2004

Rai

sed

2005

Rai

sed

2006

Rai

sed

2007

2008

2009

2010

2011

2012

2013

-203

0

2030

+

6.9%7.8%

11.9%13.0%

10.1%

2003 2004 2005 2006 2007

Tier I Tier II

9.9%10.4%

13.1%

14.8%

11.7%

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Equity Overview

Share price ISK 28.0 (11/03/08)

Market cap ISK 313.6bn (USD 4.6bn)

Equity ISK 176 bn (USD 2.9bn)

After-tax profit 2007 ISK 39.9bn (USD 629m)

Last 12 month P/E: 313.6/39.9= 7.85

P/B: 313.6/180 = 1.74

Trading volume YtD: ISK 54.4bn (USD 0.8 bn) (3,850 transactions)

Trading volume 2007: ISK 361.2bn (17,070 transactions)

Top 12 Nordic Financial institutions

11.50%Approx. 28,000 shareholders

47.8%Next 50 largest shareholders

40.7%Samson Eignarhaldsf.

Share price & trading volume

0

5

10

15

20

25

30

35

40

45

50

Jun 06 Dec 06 Jun 07 Dec 070

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Volume (ISKm) Share Price

13,783

38.6

14.0

8.0

3.8 3.7 3.74.6

20.3

2.3

17.617.4

25.4

Nor

dea

Dan

ske

Ban

k

DnB

NO

R

SEB

Sve

nska

Swed

bank

AB

Kau

pthi

ng B

ank

Land

sban

kiG

litni

r

Jysk

e Ba

nk

Pohj

ola

Bank

Syd

bank

A/S

USD billion

16

Key Highlights

Sound asset quality

1. Effective risk controls and prudent credit loss provisions, or 1.1% as a ratio of total loans2. Total assets of USD 48.7bn with continued asset diversification by sector and geography3. Strong capital adequacy ratio of 11.7%, thereof Tier 1 of 10.1 %

Strong liquidity position

Solid Q4 results in turbulent

times

1. Continued growth of deposits across markets and strong deposits/loans ratio of 70%2. Strong liquidity position, liquid assets USD 13.2bn at year-end 20073. Light repayment profile going forward, with only USD 1.1bn maturing in 2008

1. Pre-tax profit ISK 45.6bn (USD 717m), thereof ISK 34.7bn (USD 546m) for core operations 2. Pre-tax ROE 31%, thereof 24% for core operations

Anchored in a resilient

economy

1. Strong government fiscal position with negligible external debt and a fully funded pension system, Iceland ranks highest with 132.7% ratio of pension fund assets to GDP*

2. Economy driven by internationalisation and a growing financial sector, but otherwise anchored in sectors not affected by current downturn, e.g. food production, technology, and power utilisation and production

No exposure to SIVs or

Monolines

1. Landsbanki has no exposure to the US subprime mortgage market, asset backed securities (ABS), collateralised debt obligations (CDOs), collateralised loan obligations (CLOs), structured investment vehicles (SIVs), Monolines or any such structured vehicles

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