Guernsey Bank Ups Rates After UK Increase

by Carla Johnson, Investors Offshore, London

14 May 2007

Following last week's interest rate increase by the Bank of England, Landsbanki Guernsey, a specialist offshore savings subsidiary of Icelandic bank Landsbanki Islands, has announced that the interest rates on all its variable rate savings accounts will be increased by at least 0.25%.

The annual interest rate on the International Access account will be increased by 0.4% to 5.71% (AER), 0.21% above the Bank of England Base Rate. The interest rate payable on the variable rate International 60 account will be increased to 5.86% (gross/AER), 0.36% above the Bank of England Base Rate. International Tracker 90 account customers will receive 5.96% (gross/AER), 0.46% above the Bank of England Base Rate and is guaranteed to be at least equal to the Bank of England Base Rate until 31st December 2007. These increases in the interest rates will be effective from 18th May 2007.

Mark Sismey-Durrant, Director of Landsbanki Guernsey, comments: ‘The fact that we are once again passing on to our offshore customers at least the full increase in the Bank of England Base Rate demonstrates our commitment to providing a great rate of return on an ongoing basis.’

Landsbanki Guernsey has also announced the launch of a new range of one to five year fixed rate bonds, with market-leading interest rates of 6.11% gross/AER and 6.01% gross/AER. The bonds are available to both individuals and corporate investors and investors can opt for interest to be paid annually or at maturity, to suit their tax-planning needs.

Says Mark Sismey-Durrant: ‘We have a limited tranche of funds available. With the highly competitive interest rates on offer, plus the choice of interest paid annually or at maturity, we expect demand to be high for these bonds, which complement our existing range of variable rate accounts.’

The bonds are available for deposit amounts from GBP10,000 to GBP2 million and those wishing to invest can either contact the Bank for an application pack or download one from its website at www.landsbanki.co.gg.

Landsbanki is a growing European bank with total assets of ISK 2,317 billion (EUR 26.4 bn) at 31 March 2007 and a market capitalisation of ISK 383 billion (EUR 4.4 bn) at 3 May 2007. Headquartered in Reykjavik, Iceland, Landsbanki Islands hf. is traded on the OMX Nordic Exchange Iceland under the symbol . Landsbanki is rated by Moody's (Aa3 / P-1 / C / Stable) and Fitch (A / F1 / B/C / Stable).

Building on its strong foundation in Iceland, Landsbanki has successfully extended its financial operations into new markets, focusing on serving mid-cap corporates in Europe. The bank's unique product line includes access to both debt and equity markets; its research department is among the most comprehensive in Europe, including some 90 analysts covering more than 800 European stocks locally. Landsbanki and its subsidiaries now operate in all major financial centres of Europe, and have North American representation in New York and Halifax. Through its extensive distribution network, Landsbanki has a strong platform to deliver targeted financial services based on local expertise.

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