Net After-tax Profit ISK 13.8 billion Return on Equity (ROE) 45% Highlights of the Interim Financial Statements of Landsbanki Íslands hf. for Q1 of 2007 • The bank's after-tax profit in Q1 2007 was ISK 13.8bn (€ 154m), as compared with ISK 14.3bn in Q1 2006. Profit in Q4 2006 was ISK 14.1 billion (bn). • After-tax return on equity (ROE) in Q1 was 45.2% as compared with a ROE of 36.3% for 2006 as a whole. • The group's core income (interest margin plus commission income) was ISK 20.6bn (€ 230m), a YoY quarterly increase of ISK 4.8bn (€ 54m) or 31%, and an increase of ISK 3.1bn (€ 35m) or 17% from Q4 2006. • Revenue from operations abroad was ISK 12.3bn (€ 137m), or 42% of total operating revenue. • Core income from operations abroad was ISK 10.7bn (€ 119m) or 52% of the Group's core income in Q1 2007. • The cost-income ratio for the period was 42.2%. • Trading gains and investment income amounted to ISK 8.8bn (€ 98m), as compared to ISK 11.2bn in Q1 2006. • Landsbanki's total assets amounted to ISK 2,317bn as of the end of March 2007. Converted to €, the bank's total assets amounted to € 26.4bn at the end of March, up from € 23.2bn at the beginning of the year. • Customer deposits grew by 34% in Q1 2007 to total ISK 913bn (€ 10.4bn) at the end of March. They represent 62% of total customer lending as compared to 48% at the beginning of this year. • The bank's capital adequacy ratio ( CAD ) was 13.4% at the end of March. Tier 1 capital was 11.7%. CEO Sigurjón Þ. Árnason: “Landsbanki's performance in the first quarter of 2007 was very gratifying. The bank's after-tax profit was around ISK 14bn and its ROE 45%. Income generation comes from a solid and broad base, as reflected in the strong growth of core income, which was up 17% from the previous quarter and 31% over the same period of the previous year. Integration of our subsidiaries and establishment abroad has progressed rapidly and supports the bank's successful international strategy aimed at serving mid-cap companies. Strong deposit growth continued this past quarter, in particular through Icesave. Currently 62% of Group lending is funded by deposits, reinforcing its balance sheet considerably. It's no exaggeration to say that the year has begun well at Landsbanki.” CEO Halldór J. Kristjánsson: “The Q1 results, with very high profit and profitability, clearly reflect Landsbanki's strong position. The turbulence of past quarters concerning Icelandic financial enterprises appears to have subsided. Moody's has upgraded Landsbanki's ratings following its adoption of new JDA methodology. As a result, the bank's rating rose by two notches, from A2 to Aa3, and its financial strength outlook was changed from negative to stable. CDS spreads on Landsbanki's bonds have been dropping and currently range around 20-22 bp for a 5Y maturity. An improved rating, high growth of overseas deposits and strong liquidity, together with continuing very credible growth of net interest and commission income, are all indicative of this quarter's positive outcome.” A copy of Landsbanki's interim financial statements for Q1 of 2007 is available on the Bank's website www.landsbanki.com For further information contact Landsbanki's CEOs: Sigurjón Th. Árnason, Tel. +354 410-4009 / +354 898 0177 and Halldór J. Kristjánsson, Tel. +354 410 4015 / +354 820 6399.