Ársskýrsla Landsbankans - Landsbankinn

Notes to the Consolidated Financial Statements
5. Operating segments
On 26 August 2010 the CEO of the Bank presented a new organisational chart for the Group which became formally effective from 1 October 2010.
Management of the Bank has already started the implementation of the necessary changes of the infrastructure in order to have the Group fully
operational in line with the new organisational chart from 1 January 2011.
The organisational chart is structured around the following eight main divisions: Retail Banking, Corporate Banking, Markets & Treasury, Asset
Management, Risk Management, Finance, Corporate Development and Asset Restructuring. Commercial and profit-generating divisions are given
increased prominence in order to sharpen the Group's focus and improve its services to customers.
From the foundation of the Bank on 7 October 2008, the financial information available for evaluation by management in deciding how to allocate
resources and assess performance is that of the business as a whole. For this reason the Group had a single reportable segment during the years
2010 and 2009.
Notes to the Consolidated Statement of Financial Position
6. Classification and fair value of financial assets and liabilities
According to IAS 39, financial assets and liabilities must be classified into specific categories which affect how they are measured after initial
recognition. Each category's basis of subsequent measurement is specified below:
• Loans and receivables, measured at amortised cost;
• Financial assets and liabilities held for trading, measured at fair value;
• Financial assets designated as at fair value through profit or loss, measured at fair value;
• Other financial liabilities, measured at amortised cost.
The following table shows the classification of the Group's financial assets and liabilities according to IAS 39 and their fair values as at 31 December
2010:
Designated
as at fair
Liabilities at
amortised
Other
liabilities at
Total
carrying
amount Fair value
Loans and Held for
Financial assets
receivables trading value cost fair value*
Cash and balances with Central Bank 47,777 - - - - 47,777 47,777
Bonds and debt instruments 100,244 43,734 17,580 - - 161,559 161,559
Equities and equity instruments - 3,178 26,251 - - 29,429 29,429
Derivative instruments - 23 - - - 23 23
Loans and advances to financial institutions 91,882 - - - - 91,882 91,882
Loans and advances to customers 592,954 - - - - 592,954 620,403
Other financial assets 7,070 - - - - 7,070 7,070
Total 839,927 46,936 43,831 0 0 930,693 958,143
Financial liabilities
Due to financial institutions and Central Bank - - - 147,478 - 147,478 147,478
Deposits from customers - - - 371,558 - 371,558 371,558
Derivative instruments and short positions - 7,119 - - - 7,119 7,119
Secured bonds - - - 261,313 - 261,313 261,313
Contingent bond - - - - 26,510 26,510 26,510
Other financial liabilities - - - 4,237 - 4,237 4,237
Total 0 7,119 0 784,585 26,510 818,215 818,215
* The contingent bond was recognised in the year 2009 as part of the settlement for the assets acquired and liabilities assumed from Landsbanki Íslands hf. The bond is a financial liability
which the Group is required to measure at fair value in accordance with IFRS 3 (2008), with any resulting gain or loss to be recognised in income statement.
NBI hf. Consolidated Financial Statements 2010 26
All amounts are in ISK million
126 Ársreikningur 2010 Allar upphæðir eru í milljónum króna