New emphases in Landsbankinn's strategy up to 2015
Changes made to the bank's organisation
Landsbankinn has introduced new emphases in strategy up to 2015 based on the bank's strategy, which was introduced in 2010 under the name Your Landsbankinn. The new emphases entail increasing operational efficiency by reducing cost, strengthening management and team unity, while also pursuing a responsible market advance. At the same time, the bank has made significant changes to its organisation chart, which will take effect as of 1 October.
The changes are a natural part of the vision formed by the bank over two years ago. Then the bank's key goals were presented, all of which the bank has achieved apart from the reduction of operating cost, which is higher than expected due to, among other things, the merger with SpKef.
With the changes, emphasis is placed on increased cooperation between all of the bank's divisions that communicate with customers, in order to offer better and more effective services with the mutual benefit of customers and the bank in mind. New emphases should promote the objective of efficient and profitable operations. They are also intended to strengthen the branches and provide employees with a greater mandate to act.
New organisational chart
After the changes, the bank's divisions will be seven instead of nine before. Income-generating divisions will be three; Personal Banking, Corporate Banking and Markets. The support divisions are four; Risk Management, Finance, Corporate Development & HR, and finally Operations and IT, which is a new division. Asset Restructuring will be dispensed with; its temporary role will be finished as the debt settlement of companies is almost complete. Vehicle & Equipment Financing will then be transferred under Personal Banking. Finally, the division Markets & Treasury will be abolished and its operations divided between Finance on the one hand and Markets on the other.
Managing Directors will be Helgi Teitur Helgason Personal Banking, Árni Thór Thorbjörnsson Corporate Banking, Hrefna Ösp Sigfinnsdóttir Markets, Perla Ösp Ásgeirsdóttir Risk Management, Jensína Krístin Böðvarsdóttir Corporate Development & HR and Hreidar Bjarnason, who will become the Finance Director. Hjördís Dröfn Vilhjálmsdóttir resigns as Managing Director. The position of Managing Director of the new division Operations & IT will be advertised for application on Saturday 29 September.Following the changes twelve employees will leave their positions at the bank's headquarters. The reduction in the number of employees comes as a result of rationalisation measures taken concurrently with changes to the organisation chart.
Steinthór Pálsson CEO commented: "Levies on financial institutions have increased and it is necessary to seek ways to rationalise operations. Changes to the operations now are a natural part of the restructuring Icelandic banks and the banking system as a whole must undergo. The most important task in the past year has been to resolve household and corporate debt problems, and that task is nearing its end. This is therefore the right time to review our operations and lay down the strategy for the coming years. Landsbankinn intends to be in a leading position and has set itself ambitious goals of becoming exemplary in 2015. The emphases which we are currently introducing are stepping stones on that way."
