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Halldór J. Kristjánsson

CEO

Landsbanki

Overview PresentationWinnipeg – April 2007

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1995 1997 1999 2001 2003 2005 2007

Forecast

Iceland - A Growing Nation with Strong Fundamentals

Reykjavík

• Iceland is the 4th most competitive nation in the world, according to the 2006 IMD World Competitiveness Yearbook

• Iceland’s GDP per capita is among the highest in the world - GDP has grown by 50% in real terms in the last 10 years,

• GDP growth in 2007 is estimated at 2,5% and will be close to long term potential of around 3% as the economy gathers pace and FDI projects materialize.

• Government credit ratings are high/Aaa

• Strong capital formation and international diversification in recent years and a well functioning pension system - Fully funded with assets amounting to 116% of GDP and tax efficient supplementary pensions growing fast since 2002

The nation is young and life expectancy, labour market participation, employment and educational levels are well above the OECD average

Iceland is rich in natural resources, including in particular its bountiful fishing banks and energy sources

Source: Ministry of Finance, Statistics Iceland & OECD

Iceland is 103,000 square kilometers

Total inhabitants 300,000, population growth ~ 1%

As a member of the European Economic Area (EEA) since 1994, Iceland is part of the European Single Market for financial services

Iceland has implemented all the EC directives on banking, insurance and securities trading

Iceland

GDP Growth 2000-2007

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3.0%10.2%

25.0%

3.7%

14.9%

65.0%

1997 2003 2006e

Inward investment

Outward investment

0%

9%

30%

40%

40%

40%

50%

50%

52%

69%

70%

80%

98%

98%

98%

99%

99%

100%

100%

365 hf

Teymi

Tryggingamidstödin

Atorka Group

Exista

FL GROUP

Glitnir Bank

Straumur-Burdaras

Landsbanki

Kaupthing Bank

Icelandair Group

Hf. Eimskipafélag Íslands

Marel

Actavis

Icelandic Group

Össur

Mosaic Fashions

Alfesca

Bakkavör Group

Continued International Diversification of the Icelandic Economy

• Continued growth underpinned by strong inward and outward FDI flows

• Strong growth of FDI and Portfolio capital abroad – 215% of GDP in 2006

• Landsbanki – well hedged against cyclical economic developments

• About 75% of cash flow of ICEX listed companies is denominated in foreign currencies, 80-90% excluding the banks

Source: Iceland CB

Estimated foreign earnings 2007 as a ratio of total income of largest ICEX-15 corporates

Source: Landsbanki Research

FDI as % of GDP

5

N-America1%

Iceland61%

Luxembourg4%

UK & Ireland19%

Nordic & Cont. Europe

15%

Landsbanki - A Growing International Bank

Positions by location

120 years of operations since establishment in 1886 and headquartered in Iceland

Provides, corporate banking, investment banking, asset management, private banking and retail banking services

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

European platform focused on small and medium sized corporates

Rating Moody’s Fitch

Long-term Aa3 A

Short-term P-1 F1

Outlook Stable Stable

Bank financial strength

C B/C

Ratings upgraded

February 2007 November 2005

Confirmed February 2007 March 2006

2,117

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Nordic & Cont. Europe

5%

UK & Ireland18%

Luxembourg15%

Iceland62%

Iceland48%

Luxembourg6%

UK / Ireland21%

Nordic and Cont. Europe

25%

Aðrir17%

EUR28%

GBP17%

ISK38%

A Growing International Bank

Income by location

(total: ISK 89 bn)

Lending by location

(total: ISK 1,438 bn)

N-America1%

Iceland61%

Luxembourg4%

UK & Ireland19%

Nordic & Cont. Europe

15%

Employees by location

(total: 2,117)

Income by currency

Nordic and

others

25%

Others

17%

Nordic and

others 15%

Nordic and

others 5%

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Market share in domestic market

Branch network in domestic market

9 9 6 6 6

55 53

42

31 30

26 27 28 28

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15 16

26 21 1712

1998 1999 2000 2001 2002 2003 2004 2005 H1 06

Regional Branches

Branches

Sub-Brances

The Leading Financial Institution in Iceland

Leading bank with 30% market share in domestic retail market

Domestic branch network’s lending and deposits increased by 80% and 19% respectively in 2005

Leading corporate lender in Iceland with a 37% market share

Leading provider of M&A, foreign exchange, derivatives, equity and fixed income services with more than 40% market share in FX

Assets under management EUR 4.6 bn and 34% leading share in domestic funds

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Stillholt

Leifsstöð

Fáskrúðsfjörður

Neskaupstaður

Hornafjörður

SelfossReykholt

Hvolsvöllur

EskifjörðurEgilsstaðir

Vopnafjörður

Reyðarfjörður

Borgarfjörður eystri

Seyðisfjörður

ÞorlákshöfnGrindavík

Keflavík

Akranes

Ólafsvík

Húsavík

AkureyriSauðárkrókur

Skagaströnd

Grundarfjörður

Ísafjörður

Hellissandur

Kjarnaútibú

Minni útibú

Branch network in Iceland

Aðalbanki

Austurbær

Vesturbær

Langholt

Háaleiti

Bæjarútibú

Grafarholt

Breiðholt

Höfðabakki

Árbær

Hamraborg

Smáralind

Hafnarfjörður

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2006 Main Results

Strong results

• Profit before taxes ISK 44.7 bn (CAD 800m)

• Profit after taxes ISK 40.2 bn (CAD 717m)

• ROE before taxes 40%

• ROE after taxes 36%

• Cost-Income Ratio 43%

Strong balance sheet

• Total assets ISK 2,173 bn (CAD 38.8bn)

• Shareholders equity ISK 144 bn (CAD 2.6bn)

• Tier 1 Capital Ratio 13.0%

• CAD Ratio 14.8%

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Implementing the Strategy

Strengthening a profitable corporate and investment bank, focused on mid-cap corporates in Europe through organic growth and bolt-on acquisitions, and acquisition of sound banking assets...

Specialty financebanking & retail deposits

... funded by capital markets together with wholesale deposits raised in Europe and retail deposits raised via Internet in selected markets

• Corporate Banking

– Structured Finance

– Asset Backed Lending

– Trade Finance

– Property Finance & Specialised SME Financing

• Corporate Finance

– Corporate Advisory

– Equity Capital Markets

• Specialised Retail Banking

– Specialised Mortgages

• Equity Research & Institutional Brokerage

– Corporate Brokerage

– Securities Finance and Derivatives

• Funding

– Capital Markets

– Retail Deposits - Icesave

– Wholesale Deposits

• Private Banking & Asset Management

– Comprehensive personalized private banking

– Wide range of international and domestic asset management products

Corporate &

investment banking

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Execution of strategy• Buy small platforms that support strong organic growth

– By adding new services and teams

– Establish branches and representative offices

• By strengthening existing services

• Buy quality assets not assets that need to be fixed

Investments (€350m)

Heritable BankLuxembourg

Teather & GreenwoodKepler EquitiesMerrion Capital

Lex LifeCheshire Guernsey Limited

Organic Growth

London BranchAmsterdam Branch

Canada BranchNorway Branch

Faroe Islands Rep OfficeIcesave – Deposits

Cork Office

In The Pipeline

USA Rep OfficeHong Kong Rep OfficeSingapore Rep OfficeGenf Private Banking

Scandinavia

Growth

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Transformation of Landsbanki Since 2002

ISK billion

2002 Change 2006 CAD billions

Total assets 277.8 2,172.9 38.8

Total loans to customers 214.8 1,438.4 25.7

Total deposits from customers 108.3 682.8 12.2

Net operating income 13.9 89.4 1.6

Number of countries 2 15

Number of employees 986 2,117

Profit before taxes 2.5 44.7 0.8

Market cap 25 347.2 6.2

+ 8x

+ 7x

+ 8x

+ 6x

+ 8x+ 7x

+ 2x

+ 18x

+ 14x

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Operation in 15 countries

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Basic Structure – Business Lines and Regions

Brokerage &

ResearchCorporate Banking

(BÞB)

Corporate Finance AM & PB

FX & Derivatives

Intl. Treasury

Retail Banking & Speciality Finance Deposits

Iceland                

UK              

Ireland                

Luxembourg            

Germany                

France                

Spain              

Italy                

Switzerland            

Netherlands                

US                

Canada            

Guernsey                

Norway / Faroe Islands              

Fully Operational

Start-up Phase

(JK)

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95

214 29

UK Netherlands

45

Germany

63

Switzerland

29

Italy

32

Spain

111

France

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USA and Canada

450

Iceland

Ireland

Luxemborg

93811

92

Norway 3

Faroe Islands 1

Number of full-time equivalent positions by country at year end 2006

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Continuous Integration and Consolidation of Operational Platforms

Strong track record of profitably integrating new subsidiaries both domestically and internationally since first overseas acquisition in 2000

Implementation of growth strategy

Buy small platforms, efficiently run quality assets, that support strong organic growth

Retain existing management and add key employees with relevant experience

Add new services and strengthen existing product line

Product and service synergies with Landsbanki

Corporate finance with direct link with Landsbanki

Risk control, compliance, audit & accounting

Joint IT and marketing support

Growth

Investments (EUR 350 m)*

Heritable BankLandsbanki Luxembourg

Teather & Greenwood

Kepler EquitiesMerrion Capital

Lex LifeCheshire

Guernsey Limited

Organic Start-ups

London BranchAmsterdam

BranchCanada Rep.

OfficeFaroe Islands Rep.

OfficeNorway Rep.

OfficeICESAVE - Deposits

Overall brand harmonization and product development proceeding well

* including estimation of earn-out arrangements for Merrion and Kepler

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International Banking Platform - Overview

• Staff of 94

• Deposits: ISK 89.5bn (EUR 955m)

• Loans: ISK 222.2bn (EUR 2.4bn)

• Operating Revenues: ISK 5.5bn (EUR 63m)

• Private Banking services: Wealth Management; Tax Advise; Brokerage Services; Lending and Deposits; Pension and Life Insurance

• Credit activities for high net worth individuals and small/medium-sized financial institutions in Nordic region

• Staff of 92

• Deposits of ISK 99bn from over 10,000 customers

• Loan portfolio ISK 104bn to 9,000 customers

• Operating Revenues: ISK 2.6bn (GBP20.6m)

• Best buy table led outsourced retail savings

• A Fitch rating A/F1 and fully funded through deposits (plus capital)

• 5 Business lines across residential mortgages; structured property finance; asset finance and deposits

• Staff of 73

• Deposits of ISK 247 bn (GBP 1.8 bn)

• Loan portfolio ISK 166 bn (GBP 1.2 bn)

• Operating Revenues: ISK 5.9bn (GBP 46m)

• Two thirds of projects have international (non-Icelandic) sponsors

• Employees from major Investment and retail banks (JP Morgan, Barclays Capital, RBS, Deutsche etc) with international experience

Continue organic growth and acquire banking assets that support stable recurring revenue streams

London branch

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Corporate Investment Banking Platform - Overview

• Market share of 8-10% in local corporate finance market 2004

• Corporate advisor to majority of Ireland’s largest transactions

• Wealth management - market share of <5% of Irish high net worth client base

• Institutional Equities – market share of 7-9% in Irish secondary equity trading

• Winner of MoneyMate and Investor Magazine Awards

• Staff of 96

• Staff of 350

• 1,500 institutional clients

• Market share of 2-4% in secondary equity trading

• 260 corporate roadshows and 150 client field trips organized in 2006

• Top 10 ranking for Country Analysis in 5 countries (Extel)

• Pan-European Small Cap rankings: sales (7th) and research (8th) (Extel)

• Named best stock picker in Europe by Bloomberg

• Staff of 155

• 230 commission paying UK institutional clients

• Mid cap / small cap market share of 3.5%, in the top 10

• 120 plus retained corporate finance clients

• 300 investment funds clients –UK and worldwide

• UK secondary market share of almost 5%

• Ranked as top 5 UK player

Significant Opportunities in Fragmented Competitive Landscape - Combined Research of +800 Stocks

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Significant Opportunities in Fragmented Competitive Landscape

ABN Amro CSFB Deutsche Bank DRKW Goldman Sachs

JPMorgan Lehman Merrill Lynch Morgan Stanley UBS

Global Broker DealersGlobal Broker Dealers

Local BrokersLocal BrokersLocal Brokers

Global Broker Dealers

UK Ireland Germany France Spain Netherlands Switzerland Italy Iceland

Landsbanki Landsbanki Landsbanki Landsbanki Landsbanki Landsbanki Landsbanki Landsbanki Landsbanki

Evolution NCB Berenberger BNP Exane SCH Petercam LODH Intemonte Glitnir

Seymor Pierce GoodbodySal Oppenheim Ixis Sevurities Fidentis Rabobank

Bank am Bellevue Eurombiliare KB banki

Bridgewell Davy ChevreuxSociete General BBVA Chevreux Vontobel Straumur

Peel Hunt Bloxham Metzler Chevreux Chevraux Fortis Chevreux Mediobanca

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Landsbanki – Combined Research Product of +800 Stocks

Iceland

Paris LondonReykjavikDublin

u Common Research Productu Common Databaseu 80+ Analystsu 800 Companies

LaunchedMay, 2006

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The Landsbanki Equity Story- share price & volume -

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Volume (ISKm)

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The Equity Story – Good Share Liquidity

Landsbanki one of the most actively traded stocks on ICEX

Samson Eignarhaldsf. 41.4%

Next 30 largest shareholders 39.9%

Approx. 29,000 shareholders 18.7%

Volume YTD 2007:

CAD 2.5 billion (5,678 transactions)

20.04.07 - Share Price 34.5

Market Cap CAD 7bn

Share PriceVolumeISK million

13,783

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Further involvement in Energy Projects

• Recently Landsbanki formed the company HydroKraft Invest hf. in equal partnership with Landsvirkjun.

• In HydroKraft Invest hf. Landsvirkjun’s experience and know-how in building and operating large and medium sized hydro power plants is combined with Landsbanki’s financial expertise and network of energy analysts to form a strategic alliance.

• HydroKraft Invest will participate in power projects outside of Iceland, mainly in Europe.

• The initial focus is on rehabilitation of existing hydropower plants.

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Basic Facts about Utilization of Energy in Iceland

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Landsbanki activities in Canada

• Borrowing

– CAD 300 millions five year bond issue (dec 2006)

– New bond issues and private placement planned in 2007

• Lending to Canadian companies and Icelandic companies for projects in Canada

– 10 clients

– Ammount commited and in the pipelines CAD 250 millions

• Private banking and asset management

– Establishing presence in Winnipeg

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Representative office in Canada

Representatives office located in:

– Halifax, Nova Scotia with 3 employees

– Winnipeg with 2 employees

Role of representative offices

– To promote Landsbanki services

– To liaise between Landsbanki in Iceland and overseas clients

– To bring Landsbanki’s specific know-how of the fisheries industry from Iceland overseas fisheries companies

Products to be promoted

– Trade finance & revolving credit

– Syndications with other banks or financial institutions

– Private banking and asset management

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