Glitnir and Kaupthing have reported solid earnings performances in the first half of the year, rounding off a better than expected results season for ther Icelandic banking sector despite a cocktail of factors that have buffeted the strength and stability of the country’s main banks over the last six months.

The bank results, led by Landsbanki’s robust set of numbers on Tuesday this week, provide a sure sign of the banks’ ability so far to withstand the broader financial market volatility, difficult domestic and global macroeconmic backdrop and pressure they have been under in the credit derivatives markets.