LBI’s financials in Q3 of 2010

Landsbanki Íslands hf. was considerably successful in increasing assets recovered in Q3 of 2010. The increase over the previous quarter amounted to ISK 18 billion in foreign currencies. The real increase in the value of the bank’s asset portfolio in foreign currencies was equivalent to almost ISK 130 billion from 30 April 2009 to 30 September 2010, or on average close to ISK 21 billion per quarter. It should be borne in mind that by far the greatest portion of the portfolio is overseas, with the result that amounts in ISK do not present a true picture of its increase in value. Only just over 8% of the bank’s total assets are in ISK. Calculated in foreign currencies, the bank’s recovery rate is around 93% of priority claims, but due to considerable ISK strengthening during the period, the recovery rate in this currency is estimated at 86% as of 30 September this year.

The bank’s total assets were valued at ISK 1,138 billion as of 30 September this year, compared to ISK 1,100 billion as of 30 April 2009. One very positive sign is that cash is being collected more rapidly than provided for in the bank’s estimates. According to the bank’s estimates at the beginning of 2010, its cash was expected to amount to around ISK 319 billion at year‐end 2010, or the equivalent of ISK 286 billion at the exchange rate as of 30 September this year. At the end of September this year, however, the bank’s cash amounted to around ISK 293 billion, already more than was estimated for year‐end at the beginning of this year. This shows the bank’s success in this regard, well exceeding previous estimates.

Further information on Landsbanki’s financial situation is available on the bank’s website, http://lbi.is/Home/Winding-up-Proceedings/Financial-Information/ More details of the bank’s financial situation and the activities of its Resolution Committee and Winding‐up Board will also be provided at the creditors' meeting to be held on 1 December this year.

Further information is available from: Páll Benediktsson, Landsbanki Íslands hf. Tel. 354 410 3922, 354 895 6066, pallb@lbi.is.

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