Strong in the vehicle loan market
Car sales contracted considerably in 2018, with data from the Icelandic Transport Authority showing that 17.974 new passenger cars were registered in 2018, a 15.6% decrease from the previous year. New registration of used passenger cars also decreased considerably, with over 3,200 used vehicles registered for the first time in Iceland in 2018.
In recent years, total lending for vehicle purchases increased in line with higher vehicle sales. Despite the contraction in the sale of passenger cars seen in 2018, loans granted by Landsbankinn Vehicle & Equipment Financing came to almost the same amount as in 2017, reflecting the Bank’s strong standing in this market.
Travel industry remains important
The Bank granted a total of ISK 8.3 bn in vehicle loans to individuals during the year, which is a similar amount as in 2017. New loans to companies in the vehicle and equipment market amounted to ISK 24.8 bn in 2018, which is also similar to 2017 figures, and with companies in the travel industry being most prominent among customers.
The book value of Landsbankinn’s Vehicle & Equipment Financing’s credit portfolio was ISK 52.7 bn at year-end 2018 as compared with ISK 48.4 bn at year-end 2017, an 8.9% YoY increase. Around one third of loans were issued to private individuals and two thirds to corporates.