| |
"We have an active central
risk control and apply a
systematic stress test to all
the market risks that the
bank takes on."
Halldor Kristjansson |
Landsbanki made one of the two Icelandic assaults on the UK banking market in 2005 – the other being Kaupthing's acquisition of Singer & Friedlander – with the acquisition of merchant bank Teather & Greenwood in February. Landsbanki has already embarked on an ambitious strategy of growing Teather & Greenwood's business, using the expertise it has developed from serving the Icelandic corporate market.
Although the initial benefit of purchasing Teather has been the attractive fee income it contributes to revenues, Landsbanki intends to get much more from its acquisition. "We believe that by teaming up we can expand its existing business by increasing its capital base, allowing it to do more market making and over time pre-equity activity," explains Halldor Kristjansson, CEO of the bank.
