Arion Banki Hf · OMXICE:ARION
Arion Banki Hf — Q2 2026 Earnings Presentation
29 slides from Arion Banki Hf's earnings presentation, Jul 29, 2026
Slide 1: Q2 results 2026 Investor presentation
Q2 results 2026 Investor presentation 29 July 2026
Slide 2: Key results
Key results Medium-term targets Q2 2026 H1 2026 Key results Return on equity1 Exceed 13% 15.5% 14.6% Core operating income2 / REA Exceed 7.2% 7.9% 8.0% Solid first half of the year with all medium-term targets achieved Exceed weighted Insurance revenue growth average growth of 5.8% 6.5% (YoY)3 compe
Slide 3: Key operational highlights in Q2 2026
Successful EUR 300m senior Capital optimization preferred financing in May continued The issuance was 8x oversubscribed with orders ISK 5bn share buyback launched in May received from 124 investors spanning more than 26 Blikastadir sales countries across EMEA and APAC. process launched Key operation
Slide 4: Enhancing customer service through loyalty program
Arion Rewards Best banking app, Delivering greater customer value 10 years in a row through Group-wide collaboration Newest feature: Personalized - Over 60,000 customers now enrolled activity feed based on client in Arion Rewards segment needs. - Reward deposit accounts number New full service branc
Slide 5: Modest economic growth in a challenging environment
Modest economic growth in 14% Growth contributions of GDP components 3.0% Economic growth forecasts for 2026-2028 a challenging environment 12% 10% 2.5% 2.3% 8% 2.0% - According to Statistics Iceland’s first estimate, GDP grew 6% 2.0% 1.7% by 2.7% year-on-year in the first quarter, supported 4% main
Slide 6: Caught between inflation and slowdown
Caught between inflation Exchange rate - daily average Number of apartments for sale and house prices - thous. and YoY %-change and slowdown 170 28% 7 165 24% 6 160 20% 5 - Economic activity has weakened in recent quarters. Job 155 16% 4 growth has slowed sharply, private-sector employment 12% 3 has
Slide 7: Small economy, strong foundations
Small economy, strong foundations Total exports composition CBI's FX reserves Net international investment position - index, total in 2012=100 - bn. EUR - % of GDP 8 100% 160 50% 140 6 0% 120 4 100 -50% 2 80 -100% 60 0 -150% 40 -2 -200% 20 -4 -250% 0 2004 2010 2002 2023 1999 2000 2001 2002 2003 2005
Slide 8: Key takeaways from Q2 and H1 2026
Key takeaways from Q2 and H1 2026 Solid and resilient Diversified operating Positive growth Robust balance sheet profitability pillars trajectory position - ROE of 15.5% in Q2 - Diversified pillars of - 6.7% loan growth YTD - Capital position strong and 14.6% in H1 2026 the Group continue to with a
Slide 9: Income statement Q2 2026
Income statement Q2 2026 Net interest income Q2 2026 15,219 Q2 2025 14,200 Diff 7% Q1 2026 16,303 Diff (7%) Net fee and commission income 3,987 4,553 (12%) 3,876 3% − Net earnings attributable to shareholders of ISK Insurance service results 655 1,066 (39%) (66) - 8.1bn, resulting in a return on equ
Slide 10: Income statement H1 2026
Income statement H1 2026 Net interest income H1 2026 31,522 H1 2025 26,366 Diff 20% Net fee and commission income 7,863 9,089 (13%) − Net earnings attributable to shareholders of ISK Insurance service results 589 1,035 (43%) 15.4bn, resulting in a return on equity (ROE) of 14.6% compared to 16.1% in
Slide 11: Net interest income
Net interest income Net interest income (ISK bn) Credit risk (ISK bn) Robust margin while inflation continues to . . impact short-term fluctuations . . . . . . . − Net interest income was ISK 15.2bn in the quarter, . . . . . representing a 7.2% year-on-year increase . − The growth was primarily driv
Slide 12: Net fee and commission income
Net fee and Net fee and commission income (ISK m) Net fee and commission income (ISK m) commission income , , , Diversified and resilient , , , , , − Asset management fees remained stable and , , , , resilient. Following strong growth in Assets under , , Management and Supervision in 2025, fee incom
Slide 13: Solid growth momentum continues
* Combined ratio (%) Vördur net earnings (ISK m) Solid growth momentum continues . . . , , . . . . . . . . . . . − Insurance revenue grew by 6.5% in the first half . . , . of the year, exceeding inflation and outperforming . competitors’ weighted average revenue growth of 3.7% . . . . . . . − Claims
Slide 14: Net financial income
Net financial income Net financial income (ISK m) Bond holdings (ISK bn) Challenging market conditions, especially . . in equities . . . , . . . . . − Vördur’s total investment portfolio stands at ISK . . 35bn, generating a profit of ISK 62m for the quarter, , . . which includes adverse net impacts
Slide 15: Operating expenses
Operating expenses* Cost ratios (%) Total operating expenses (ISK bn) Stable underlying cost base with one-off . . . . . impacts in annual comparison . . . . . . . . . . . . . - Total operating expenses outlined here encompass . . . . costs associated with the insurance business which is reflected t
Slide 16: Balance sheet
Balance sheet Simple and robust Assets 30.06.2026 31.03.2026 Diff. 31.12.2025 31.12.2024 31.12.2023 Cash & balances with CB 114 110 4% 150 124 102 - Loans to customers increased by ISK 65bn or Loans to credit institutions 25 25 - 23 26 29 4.8% in Q2 Loans to customers 1,418 1,352 5% 1,329 1,230 1,15
Slide 17: Loans to customers
Loans to customers Loans to customers (ISK bn) Loans to corporates by sector (%) Balanced loan portfolio and solid growth , ther , , , Information and , communication technology - Loans to customers total ISK 1,418bn at the end of Accommodation and the quarter, increasing by ISK 65bn or 4.8% during
Slide 18: Residential mortgages
Residential mortgages Residential mortgages by interest rate type (ISK bn) Interest rate profile for fixed mortgages (ISK bn) Low default rates and comfortable LTV levels - Monetary tightening has resulted in a significant shift towards indexed mortgages since 2022. CPI-linked loans now constitute 6
Slide 19: Risk profile
Risk profile Development of non-performing loans, moratoria and Development of NPL ratio between segments forbearance (% of total loan book) (% of relevant loan book) Strong credit quality indicators while the . NPL ratio has recently trended upwards . . . . . . . . . . . - The non-performing loans
Slide 20: Loss allowance by IFRS 9 stages
Loss allowance by IFRS 9 stages On loans to customers total (ISK bn) On loans to corporates (ISK bn) IFRS 9 economic scenarios and assumptions The impairment ratio was 0.90%, compared to Loans to corporates provisioned 1.25% at Expected normalization of economic conditions on the back of high real r
Slide 21: Deposits from customers
Deposits from Deposits from customers (ISK bn) Deposit growth by LCR outflow category (ISK bn) customers Continued momentum in stable deposits - Deposits from customers of ISK 981bn represent of the Bank’s total liabilities - Stable deposits consist of deposits from individuals, SMEs and corporates
Slide 22: Funding and rating
Funding and rating Borrowings by type (ISK bn) Maturities of borrowings and call dates on Robust funding profile and stable ratings subordinated liabilities (ISK bn) - Successfully issued EUR 300m green senior preferred bond in May - Issued with a 3.5-year maturity and a 3.625% coupon (88bps over mi
Slide 23: Own funds
Own funds Capital ratio (%) Leverage ratio (%) Strong capital position . . . . . - CET1 position is 242bps above regulatory . requirement . . . . . - H1 net earnings of ISK 15.4bn are included in . . . CET1 but foreseeable dividends of 50% of net . . earnings and ISK 2.7bn remaining of an ongoing .
Slide 24: Own funds
Own funds Own funds and capital requirements (%) CET1 position within optimal range 21.2 – 22.2 . . . . . . - n July , the SA disclosed the Bank’s revised Pillar requirement following the SREP process based on year-end 2025 financials. The . . . additional requirement was set at 2.0% of risk-weighte
Slide 25: Going forward
Going forward Operational momentum Strategic development External environment - Solid first half of the year as - Strategy, targets and capital - Cautious stance amid macro and momentum continues priorities unchanged geopolitical uncertainty - Diversified and seasoned - Continued focus on targeted -
Slide 26: Key financial indicators - quarterly
Key financial indicators - quarterly Return on equity (%) Total cost-to-core income ratio (%) Net interest margin (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans to deposits ratio (%) Core operating income / REA (%) Capital ratio (%) (without loans financed by covered bonds) . . . .
Slide 27: Key financial indicators - annual
Key financial indicators - annual Return on equity (%) Total cost-to-core income ratio (%) Net interest margin (%) . . . . . . . . . . . . . . . CPI imbalance (ISK bn) Core operating income / REA (%) Risk exposure amount / Total assets (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 28: Key figures
Key figures* Operations H1 2026 H1 2025 H1 2024 H1 2023 H1 2022 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Net interest income 31,522 26,366 23,193 22,420 19,221 15,219 16,303 12,350 13,826 14,200 Net commission income 7,863 9,089 7,344 8,638 8,138 3,987 3,876 4,055 4,003 4,553 Operating income 39,404
Slide 29: Disclaimer
Disclaimer - This document has been prepared for information purposes only and should not be relied upon, or form the basis of any action or decision, by any person. Nothing in this document is, nor shall be relied on as, a promise or representation as to the future. In supplying this document, Ario