Íslandsbanki stock: Q3 profit rises as credit costs increase
Published on 10/30/2026 at 01:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSQuarterly results show stronger earnings
- Íslandsbanki reported higher third-quarter net profit and net interest income.
- Credit impairments increased, while capital remained above regulatory requirements.
- The bank reaffirmed its strategic focus and scheduled an investor webcast for 30 October.
Íslandsbanki reported solid third-quarter results on 29 October 2026, with net profit rising from the year-earlier period. The figures were published in a Nasdaq Iceland announcement.
Profit and interest income improve
Net profit reached ISK 7.3 billion in the third quarter, compared with ISK 6.9 billion in the same period of 2025. Annualised return on equity was 13.6%, up from 12.2% a year earlier.
Net interest income increased to ISK 15.8 billion, while the net interest margin widened to 3.5% from 3.1%. Net fee and commission income was ISK 3.3 billion, compared with ISK 3.2 billion in the prior-year quarter.
Credit costs require attention
The results also showed higher credit costs. Net impairment on financial assets amounted to ISK 1.021 billion, compared with a small reversal in the third quarter of 2025. The annualised cost of risk was 29 basis points.
Administrative expenses rose to ISK 7.3 billion from ISK 6.5 billion. The cost-to-income ratio was broadly stable at 38.4%, compared with 38.2% in the year-earlier quarter.
Loans grow while capital stays strong
Loans to customers reached ISK 1,431 billion at the end of September, after increasing by ISK 15.0 billion during the quarter. Customer deposits rose 3.9% to ISK 1,078 billion.
The CET1 ratio stood at 18.4% at quarter-end and remained above Íslandsbanki's stated buffer target. The bank also said the Central Bank of Iceland had authorised a share buyback of up to ISK 10 billion in market value; the lender bought 25.9 million own shares for ISK 3.7 billion during the quarter.
Íslandsbanki quarterly snapshot
- Reporting period: Third quarter 2026
- Publication: 29 October 2026, 16:45 CET
- Net profit: ISK 7.3 billion
- Annualised return on equity: 13.6%
- Net interest income: ISK 15.8 billion
- CET1 ratio: 18.4% at 30 September 2026
- ISIN: IS0000030914
Íslandsbanki said its investor webcast on the third-quarter results was scheduled for 30 October 2026. The presentation is expected to provide further context on earnings, capital allocation and the proposed increase in Iceland's bank tax.
For broader market context, see Current market reports.
