Landsbankinn hf, the state-created successor to failed Icelandic lender Landsbanki Islands hf, said first-quarter profit slipped 39 percent as costs increased and it paid out more in deposits.
Net income fell to 7.7 billion kronur ($61 million) from 12.7 billion kronur a year earlier, the Reykjavik-based bank said in a statement posted on its website. Net interest income after adjustments rose to 8.9 billion kronur from 5.4 billion kronur a year earlier, while operating income rose to 15.7 billion kronur from 13.3 billion kronur.
Landsbanki Islands collapsed in October 2008 after it was unable to secure short-term funding. A year later, 18.7 percent was taken over by a resolution committee representing the bank’s creditors. The Icelandic government holds 81.3 percent.
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