Ársskýrsla Landsbankans - Landsbankinn

Notes to the Consolidated Financial Statements
73. Sensitivity analysis for trading portfolios
The management of market risk in the trading book is supplemented by monitoring sensitivity of the trading portfolios to various scenarios in equity
prices and interest rates.
The following table shows how the Group’s profit before tax would have been affected by parallel shifts in interest yield curves through changes in
the fair value of its bond trading portfolios at year-end 2010 and 2009 and cash flows for the next 12 months after that, assuming a constant
financial position.
Currency (ISK million)
Parallel
shift in yield
curve in
basis points
2010
Effect of
downward
shift on
profit
Effect of
upward
shift on
profit
Parallel
shift in yield
curve in
basis points
2009
Effect of
downward
shift on
profit
Effect of
upward
shift on
profit
ISK, unindexed 100 234 (233) 100 370 (360)
ISK, CPI indexed 50 77 (73) 50 (42) 40
Total 311 (306) 328 (320)
The Group's equity would have been affected to the same extent as the income statement, but net of income tax. This is because the increase
(decrease) in profit before tax would have affected retained earnings.
The following table shows how the Group’s profit before tax would have been affected by a change of +/-10% in the price of equity and equity
instruments held by the Group at year-end which are classified into Level 1 and 2 (as defined in Note 6):
2010 2009
Currency (ISK million) Increase Decrease Increase Decrease
ISK 1,033 (1,033) 100 (100)
EUR - - 10 (10)
SEK 375 (375) 53 (53)
NOK 374 (374) 36 (36)
Other 204 (204) - -
Total 1,986 (1,986) 199 (199)
The Group's equity would have been affected to the same extent as the income statement, but net of income tax. This is because the increase
(decrease) in profit before tax would have affected retained earnings.
The following table shows how the Group’s profit before tax would have been affected by a change of +/-10% in the price of equity and equity
instruments held by the Group at year-end which are classified into Level 3 (as defined in Note 6):
2010 2009
Currency (ISK million) Increase Decrease Increase Decrease
ISK 802 (802) 414 (414)
USD - - 18 (18)
EUR 225 (225) 19 (19)
NOK 21 (21) 23 (23)
Total 1,048 (1,048) 474 (474)
The Group's equity would have been affected to the same extent as the income statement, but net of income tax. This is because the increase
(decrease) in profit before tax would have affected retained earnings.
NBI hf. Consolidated Financial Statements 2010 69
All amounts are in ISK million
Allar upphæðir eru í milljónum króna Ársreikningur 2010 169