Although the Icelandic market is tiny on any relative measurements, there a number of financial and corporate finance institutions that cater to different client needs.
Commercial Banking Institutions
There are 4 licensed commercial banks in Iceland, Landsbankinn, Íslandsbanki, Arion Banki and Kvika. The commercial banks generally full service banks when it comes to corporate clients and offer a anything from conventional banking solutions to corporate finance services and M&A advisory.
Íslandbanki is a universal bank offering comprehensive financial services to households, corporations and institutional investors in Iceland and overseas. Its Corporate Banking arm consists of three divisions:
- Brokerage & Derivatives: Brokerage provides brokerage services for both equities and fixed-income securities. It also covers FX sales, FX trading, and derivatives such as forwards and swaps, offering full access to both domestic and foreign equity and bond markets.
- Private Banking: Private Banking offers discretionary asset management and advisory services to affluent individuals, investment companies, funds, and charities.
- Corporate Finance: Corporate Finance provides service to medium and large companies and investors, including advising on mergers and acquisitions, securities issuance, and IPOs. The unit also works as a certified advisor for the Nasdaq First North market.
Corporate Banking is responsible for the Bank’s International activities, primarily focusing on the seafood and offshore industries within the North Atlantic region, including Norway, the Faroe Islands, Greenland, Canada and the United States.
Íslandsbanki and its predecessors have worked closely with the seafood industry for over a century, financing the first Icelandic motorized trawler in 1904. The Bank started its international operations in 1999 by providing financing solutions to the fishery sector on the East Coast of Canada following the moratorium on the Northern Cod fishery in the early 1990s.
Íslandsbanki Ownership and Financials
- Ownership: 100% owned by the Icelandic Government (with plans to sell)
- Íslandsbanki 2017 Annual Report
Landsbankinn offers a full range of financial services and is a market leader in the Icelandic financial service sector with the largest branch network. The banks Corporate Banking division consists of 6 business units:
Corporate online banking: Landsbankinn’s online banking for corporates endeavours to meet the needs and demands of modern companies for electronic banking transactions.
- Corporate banking: Legal entities of foreign nationality can establish a business relationship with Landsbankinn in order to make deposits.
- Standard settlement instructions: Landsbankinn is Iceland’s market leader in international payments, delivering expertise payment services based on long-standing experience.
- Asset management: An investment strategy is determined for active management, based on the objectives and needs of each customer.
- Corporate finance: Landsbankinn handles the acquisition and sale of companies or operating units, supervises the entire sales and purchase process, carries out due diligence if appropriate and manages negotiations.
- Custody: Landsbankinn provides sub-custody as well as ISK cash account services and is the market leader in the Icelandic financial service sector.
- Capital Markets: Capital Markets handle securities brokerage and trade in FX for customers of Landsbankinn, both in domestic and non-Icelandic markets.
Landsbankinn Ownership and Financials
- The Bank is owned by the National Treasury of Iceland, which holds a 98.2% stake, Landsbankinn hf., which holds 0.91% of own shares, around 1,400 current and former employees, who own 0.78% of the Bank’s shares and former guarantee capital owners of the savings banks Sparisjóður Vestmannaeyja and Sparisjóður Norðurlands, other than the Icelandic state, hold 0.11%.
- Landsbankinn 2017 Annual Report
Arion Banki is a full-service commercial bank. Along with retail banking, the banks business segments are Corporate Banking, Investment Banking and Asset Management.
- Corporate Banking provides comprehensive financial services and customized solutions to Iceland’s largest companies. The division offers solutions in funding, deposits, payment services and value-added digital services. The division is divided into three specialist sector teams: trade and services, seafood, and real estate and energy.
- The main role of Investment Banking at Arion Bank is to bring together buyers and sellers on the financial market and to advise companies and investors on how to develop their business. The main services provided by Investment Banking are securities and FX brokerage, corporate finance and research.
- Asset Management and Arion Bank’s subsidiaries are leading players on the Icelandic asset management market, with assets under management of ISK 985 billion. Asset Management comprises Institutional Asset Management, Private Banking, Investment Services and Pension Funds Administration.
Arion Banki Ownership and Financials
- Privately owned (Shareholders list)
- Arion Banki 2017 Annual Report
Kvika is the youngest of the for commercial bank and differs from the other three by not offering individual banking services, aside from wealth management. Kvika focuses on providing high quality and tailor-made services to its varied client base through its operations in Iceland and the United Kingdom. The bank’s size allows it the flexibility to utilise its infrastructure, balance sheet and relationships with other international financial services providers to deliver unique solutions.
Kvika Ownership and financials
- Kvika is listed on the Icelandic Stock Exchange and has a dedicated Investor Relations page in English.
Regulated Securities Brokerage Firms
Incorporated in 2009, Arctica Finance focuses on servicing institutional investors and other financially capable parties and offers services in three areas:
- Wealth Management
- Corporate Advisory
- Capital Markets.
Incorporated in 2009, ALM Verðbréf serves institutional investors and other financially capable parties in four areas:
- Corporate Consulting
- Risk Management & Control
- Asset Management
- Corporate Finance
Fossar Markets is an independent securities firm which primarily provides services to professional and institutional investors operating in the Icelandic market. The company has played a leading role in introducing noted asset managers, hedge funds, investment funds and other institutional investors to investment opportunities in the local market.
Merger & Aquisition Boutiques (unregulated)
Still have questions?
Feel free to contact us through our site Eykol.com. We are based in Iceland and can get you in touch with the companies that are most suited to your needs.