Íslandsbanki
A major Icelandic bank serving retail, corporate, markets, wealth-management and investment customers through a domestic branch network.
Last updated August 27, 2026
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Overview
Íslandsbanki is one of Iceland’s principal commercial banks and a broad financial-services institution focused on the domestic Icelandic market. Its activities include retail banking, corporate and commercial banking, markets and investment-banking services, wealth management, treasury operations, and selected subsidiary or equity-investment activities. The bank operates a nationwide branch network and has historically held substantial shares of the Icelandic market across its main domestic franchises. The modern brand has two closely connected historical phases. The first Íslandsbanki was formed in 1990 through the combination of Alþýðubanki, Verzlunarbanki and Iðnaðarbanki. In 2000 it merged with FBA, an Icelandic investment bank, and temporarily used the name Íslandsbanki-FBA. The FBA element was removed in 2002. In 2006 the institution adopted the Glitnir name as part of a further rebranding and corporate development. The second and current Íslandsbanki emerged during the Icelandic financial crisis. On 15 October 2008, after Glitnir banki hf. became insolvent, the Icelandic domestic operations were separated from the failed institution and placed in a new entity initially called Nýi Glitnir, meaning New Glitnir. The name was changed to Íslandsbanki on 20 February 2009. The re-established bank used a visual identity that drew on elements associated with both the former Íslandsbanki and Glitnir brands, while the return to the Íslandsbanki name helped distinguish the continuing domestic banking operation from the failed pre-crisis institution. From 2008 until 2021, Íslandsbanki was wholly owned by the Icelandic State Treasury. The state subsequently pursued a staged reduction of its holding. A 35% stake was sold in 2021, followed by a further 22.5% sale in March 2022, leaving the Treasury with a reported 42.5% interest at that point. This transition changed the bank from a fully state-owned post-crisis institution into a partly privatised listed bank while preserving its central role in Iceland’s financial system. By the end of 2017, the bank reported 861 full-time employees and assets of approximately ISK 1.036 trillion. Its organisation was described as comprising Retail Banking, Corporate Banking, Markets, Wealth Management, Treasury, and Subsidiaries & Equity Investments. In 2022 it operated 12 branches around Iceland. The bank’s positioning is that of an integrated domestic financial institution rather than a narrowly specialised lender: it serves households, entrepreneurs, companies, institutional clients and investors across several stages of the financial relationship. Its business remains concentrated in Iceland, where its branch presence, digital services and broad product range support a market share reported at roughly 20% to 40% across its domestic franchise areas. The current chief executive is Jón Guðni Ómarsson.
History
Íslandsbanki’s institutional roots extend into Iceland’s late nineteenth-century banking history, while the current brand is principally associated with a sequence of mergers, rebrandings and post-crisis reconstruction. The first modern Íslandsbanki was created in 1990 by merging Alþýðubanki, Verzlunarbanki and Iðnaðarbanki. The combination brought several established Icelandic banking businesses under one name and created a broader platform for domestic financial services. In 2000, Íslandsbanki merged with FBA, an Icelandic investment bank. The resulting organisation used the Íslandsbanki-FBA name for a period, reflecting the combination of commercial banking and investment-banking capabilities. The FBA suffix was removed in 2002. In 2006, the bank rebranded as Glitnir, ending the first phase of the Íslandsbanki identity. The global financial crisis and Iceland’s banking collapse fundamentally changed the institution. Glitnir banki hf. failed during the crisis, and on 15 October 2008 its Icelandic domestic operations were separated into a newly established bank. That entity was initially called Nýi Glitnir, or New Glitnir. It was not simply a continuation of the failed bank’s international structure; rather, it was designed to preserve core domestic banking operations in a new post-crisis institution. On 20 February 2009, Nýi Glitnir adopted the Íslandsbanki name. The new visual identity incorporated influences from both earlier Íslandsbanki and Glitnir branding, but the restored name signalled a renewed focus on Icelandic banking. The Icelandic State Treasury owned the re-established bank in full from 2008 until 2021. During this period Íslandsbanki operated as a major domestic financial institution, developing retail, corporate, markets, wealth-management and treasury businesses. By the end of 2017, its reported workforce was 861 full-time employees and its assets were approximately ISK 1.036 trillion. The bank’s business structure included six broad segments: Retail Banking, Corporate Banking, Markets, Wealth Management, Treasury, and Subsidiaries & Equity Investments. The state began a planned exit through staged sales in 2021. A 35% share was sold that year, followed by a further 22.5% sale in March 2022. The reported result was a 42.5% State Treasury holding in 2022. This privatisation marked another major transition in the bank’s history, moving it from complete public ownership toward a mixed ownership model and listed-market participation. Íslandsbanki remains concentrated in Iceland rather than operating as a broadly international banking group. Its domestic franchise has historically represented between roughly 20% and 40% of the market in its principal business areas. As of 2022, it operated 12 branches across Iceland, complemented by non-branch and digital banking services. The institution continues to provide banking and financial services to households, companies, investors and other domestic customers. Jón Guðni Ómarsson is identified as its current chief executive.
- 2022
Further privatisation
[1]The State Treasury sells an additional 22.5% share in March and is reported to retain 42.5%. The bank is reported to operate 12 branches around Iceland.
- 2021
First major state stake sale
[1]The Icelandic Government sells a 35% share as part of staged privatisation.
- 2017
Bank reports broad multi-segment operations
[1]The bank reports 861 full-time employees, assets of approximately ISK 1.036 trillion and six principal business segments.
- 2009
Íslandsbanki name restored
[1]Nýi Glitnir changes its name to Íslandsbanki on 20 February.
- 2008
Domestic operations are placed in Nýi Glitnir
[1]Following Glitnir’s failure during Iceland’s financial crisis, the domestic operations are separated into a newly established bank named Nýi Glitnir on 15 October.
- 2006
Rebranding as Glitnir
[1]The first Íslandsbanki adopts the Glitnir brand.
- 2002
FBA name element is dropped
[1]The bank returns to the shorter Íslandsbanki name.
- 2000
Merger with FBA
[1]Íslandsbanki combines with FBA Icelandic Investment Bank and temporarily adopts the Íslandsbanki-FBA name.
- 1990
First Íslandsbanki is formed
[1]Alþýðubanki, Verzlunarbanki and Iðnaðarbanki merge to create the first modern institution operating under the Íslandsbanki name.
Products and positioning
A leading full-service Icelandic bank with a strong domestic franchise and broad coverage of household, business, markets and wealth-management needs.
Consumer banking
Retail banking
Íslandsbanki’s retail franchise serves households through branch and digital channels. Its retail scope includes everyday banking, deposits, payment services, household borrowing and other personal-finance relationships. The business forms one of the bank’s core domestic franchises and supports its position as a full-service Icelandic bank.
Business banking
Corporate banking
The corporate-banking business provides financial services to Icelandic companies and other commercial customers. It sits alongside markets and treasury functions, allowing the bank to serve business clients with lending, cash-management, financing and broader banking relationships. Specific product names and terms are not established in the supplied sources.
Capital markets
Markets and investment banking
Íslandsbanki maintains markets-related capabilities inherited in part from the institution’s history with FBA Icelandic Investment Bank. The segment is associated with capital-markets, investment-banking and market-related services for corporate, institutional and investment customers. The supplied sources do not specify individual current offerings.
Wealth management
Wealth management and asset management
The bank’s wealth-management activities extend its service range beyond deposits and lending to investment and financial-planning relationships. They are directed toward affluent individuals, investors and other customers requiring portfolio or wealth-related services. The available reference material identifies the business area but does not provide a detailed product catalogue.
Bank treasury
Treasury
Treasury is one of the bank’s reported principal organisational segments. It supports balance-sheet, liquidity, funding and market-risk functions associated with operating a major commercial bank. The supplied sources do not provide enough detail to describe specific treasury products offered to external customers.
Brand decisions
2022
Continue state sell-downM&ABackground
The government continued its staged privatisation programme after the first major sale.
Action taken
A further 22.5% stake was sold in March 2022.
Aftermath
The Icelandic State Treasury was reported to retain 42.5% of Íslandsbanki.
State Treasury ownership. 65% → 42.5% (March 2022)
2021
Begin staged privatisationM&ABackground
After more than a decade of full ownership by the Icelandic State Treasury, the government pursued a plan to reduce its stake in the bank.
Action taken
The state sold a 35% share in 2021.
Aftermath
The sale initiated the transition from complete state ownership toward a mixed ownership and listed-bank structure.
Shareholding sold. 100% state ownership → 65% state ownership before subsequent sales (2021)
2009
Restore the Íslandsbanki brandStrategyBackground
The Glitnir name had become closely associated with the financial collapse, while the historic Íslandsbanki identity offered a distinct name for the rebuilt domestic institution.
Action taken
Nýi Glitnir changed its name to Íslandsbanki on 20 February 2009 and introduced a logo drawing on both predecessor identities.
Aftermath
The bank continued under the Íslandsbanki name as a post-crisis Icelandic domestic banking institution.
2008
Separate the domestic bank from failed GlitnirStrategyBackground
Glitnir’s failure during Iceland’s financial crisis created the need to preserve core domestic banking operations in a new institutional structure.
Action taken
On 15 October 2008, the domestic operations were transferred into a new bank initially named Nýi Glitnir.
Aftermath
The institution was renamed Íslandsbanki in February 2009 and became the basis of the current bank.
Recent events
- 2022
State sells a further 22.5% stake in Íslandsbanki[1]
M&A
A further 22.5% holding was sold in March 2022, leaving the Icelandic State Treasury with a reported 42.5% interest.
- 2021
Iceland begins staged privatisation of Íslandsbanki[1]
M&A
The Icelandic Government began selling down its ownership in the bank, disposing of a 35% share as part of a planned staged privatisation.
- 2009
Nýi Glitnir returns to the Íslandsbanki name[1]
Other
The post-crisis bank changed its name from Nýi Glitnir to Íslandsbanki, restoring the historic domestic banking brand.
- 2009
Icelandic banks receive satirical Ig Nobel economics recognition[1]
Other
Executives, directors and auditors associated with major Icelandic banks, including Glitnir/Íslandsbanki, were included in an Ig Nobel Economics award recognising the extreme expansion and contraction of Icelandic banking institutions and the wider economy.
- 2008
Íslandsbanki is re-established after the collapse of Glitnir[1]
Other
The Icelandic domestic banking operations formerly associated with Glitnir were separated from the failed bank and placed in a new institution initially named Nýi Glitnir.
Sources2 sources
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