Kvika Banki Hf · OMXICE:KVIKA
Kvika Banki Hf — Q2 2025 Earnings Presentation
27 slides from Kvika Banki Hf's earnings presentation, Aug 13, 2025
Slide 1: Kvika banki hf. Q2 2025 Financial Results
Kvika banki hf. Q2 2025 Financial Results 13 August 2025
Slide 2: Q2 2025
Q2 2025 Profit before tax ISK 2,025 million compared to ISK 1,189 million in Q2 2024 Profit before tax ISK 2,025 m. Increasing by ISK 836 million from previous year or 70.3% Net interest income ISK 2,962 million compared to ISK 2,428 million in Q2 2024 Profit after tax ISK 1,439 m. Increasing by ISK
Slide 3: Launch of Auður Heima met with exceptional demand
Commercial Banking Segment highlights Launch of Auður Heima met with exceptional demand • The Auður Heima mortgage offering launched in May, building on the trust and strength of the Auður brand. The product was met with exceptional demand, with applications totaling about ISK 18 billion by quarter-
Slide 4: Good quarterly performance amid market volatility
Investment Banking Segment highlights Good quarterly performance amid market volatility • The successful public offering of the state’s stake in Íslandsbanki during Q2 supported sustained equity market turnover. However, elevated and persistent inflation continued to weigh on activity in both bond a
Slide 5: Establishment of ISK 8.5bn Credit Fund ACF V Fuels Asset Growth in Q2
Asset Management Segment highlights Establishment of ISK 8.5bn Credit Fund ACF V Fuels Asset Growth in Q2 • A new ISK 8.5 billion credit fund, ACF V slhf., was launched in Q2, with ISK 6 billion already committed to new loans by the end of July • Equity markets came under pressure in early April due
Slide 6: Continued Positive Q2 Performance with Increased Activity Across UK Operations
UK Segment highlights Continued Positive Q2 Performance with Increased Activity Across UK Operations • Another strong quarter, underpinned by sustained positive results across both lending and corporate finance. Net Interest Margin (NIM) remains on target, supported by disciplined loan management an
Slide 7: Financials
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Slide 8: Income Statement Q2 2025
Income Statement Q2 2025 Income Statement ISK m. Q2 2025 Q2 2024 Diff. Q1 2025 Diff. Net interest income 2,962 2,428 534 2,917 45 Net fees and commissions 1,935 1,351 584 1,520 415 Other net operating income 231 217 14 12 219 • Strong quarterly performance, with pre-tax profit from Net operating inc
Slide 9: Income Statement 6M 2025
Income Statement 6M 2025 Income Statement ISK m. 6M 2025 6M 2024 Diff. Net interest income 5,879 4,754 1,125 Net fees and commissions 3,455 2,984 471 Other net operating income 243 326 (83) • Net interest income increased by 23.7% YoY, driven by loan book growth and a favorable deposit rate environm
Slide 10: Net Interest Income
Net Interest Income Strong net interest margin Net interest income Net interest margin development Q2 2024 to Q2 2025 / ISK m. (%) / net interest income divided by total average interest-bearing assets 844 109 2,961 606 2,428 (666) (360) 4.4% 3.8% 3.8% 4.0% 3.7% • Net interest income increased by 21
Slide 11: Net Fee and Commission Income
Net Fee and Commission Income Growth driven by strong Investment Banking activity Net fee and commission income Net fee and commission income Q2 2024 to Q2 2025 / ISK m. ISK m. 141 3 1,935 1,935 396 35 1,552 1,601 201 (18) 1,351 1,520 1,351 27 70 89 138 526 60 590 464 459 127 491 159 • Net fee and c
Slide 12: Other Net Operating Income
Other Net Operating Income Stable contribution, primarily from net financial income Other net operating income Other net operating income Q2 2024 to Q2 2025 / ISK m. Composition / ISK m. 67 Net financial income Other operating income 231 Profit from associates 217 567 (49) 474 44 70 231 • Other net
Slide 13: Operating Expenses
Operating Expenses Cost to core income continues to trend down Employee development Cost to core income Full time employees at the end of each period (%) Cost to core income Excl.one-off costs 253 253 • Salaries and related nearly unchanged YoY 244 249 249 70.5% 68.9% 69.5% • Administrative expenses
Slide 14: Balance Sheet: Assets
Balance Sheet: Assets Strong liquidity position supports loan book growth Assets ISK bn. 359.4 363.8 354.6 361.2 342.8 Assets held for sale 21.3 53.4 54.5 57.7 21.4 15.1 16.2 Intangible assets 21.9 21.9 18.4 17.2 21.7 Other assets • The balance sheet expanded in Q2, primarily driven by 12.0 172.1 Lo
Slide 15: Loans to Customers
Loans to Customers Mortgages launched in Q2 quickly gained traction Loans to customers Loan to value distribution ISK bn. ISK bn. Individual Corporate Other 31.12.2024 30.6.2025 146.7 146.0 150.2 160.6 172.1 38.1% 35.1% 37.1 37.5 39.7 39.6 44.2 • Mortgage lending launched in late May, with ISK 3 bil
Slide 16: Balance Sheet: Liabilities
Balance Sheet: Liabilities EUR issuance strengthens funding mix alongside deposit growth Liabilities and equity ISK bn. 359.4 363.8 354.6 361.2 342.8 15.4 27.1 27.3 27.3 13.5 Liabilities of asset held for sale 20.9 20.4 17.3 39.7 14.5 14.9 14.4 13.9 80.2 Other 45.4 45.4 37.1 47.8 Borrowings Debt iss
Slide 17: Credit Quality
Credit Quality Stage 3 loan ratio continues to improve Loans to customers risk stage allocation Impairment loss allowance Net loan book / (%) ISK bn. Stage 1 Stage 3 Stage 1 Stage 3 Stage 2 FVTPL Stage 2 % of gross loan book 1.6% 1.6% 1.5% 1.4% 1.3% • Loan book quality remains stable, with continued
Slide 18: Deposits
Deposits Retail deposits remain a stable core funding base Deposits by type Loans to deposits ISK bn. (%) 180.2 4.1 91% 92% 96% 95% 168.0 89% 162.6 160.1 163.4 3.5 • Total deposits increased by 10.8% YoY, reaching ISK 180.2 7.4 3.5 3.5 35.1 billion, primarily driven by growth in retail and money 21.
Slide 19: Debt Issuance
Debt Issuance First EUR bond issuance marks key milestone in market funding Development of market funding MREL requirements ISK bn. 30.06.2025 99.6 MREL-RWEA: Percentage of risk- MREL-TEM: Percentage of total 0.3 weighted exposure amount exposure measure • Kvika successfully issued its first EUR-den
Slide 20: Liquidity and Funding Ratios
Liquidity and Funding Ratios Continued strong liquidity position Total liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) 30.6.2025 / (%) 30.6.2025 / (%) Regulatory minimum Regulatory minimum 159% 160% 1.000 910% 900 160 142% 148% 144% 900 900 800 780% 800 700 140 800 700 • The liquidity
Slide 21: Capital Position
Capital Position Strong capital position well above regulatory requirements • CAR of 23.3% at the end of June, well above Kvika’s CET1 CAR management target as expected during the transitional (%) (%) period post-divestment 23.5% 23.9% 22.1% 22.8% 23.3% • The CAR includes an ISK 2.1 bn deduction fro
Slide 22: Financial Targets
Financial Targets Target 12M 2024 Q2 2025 Return on Tangible >20% 17.4% 18.5% Equity Pre-tax Capital Adequacy Ratio 200-400 bps. 480 bps. 540 bps. (CAR) Buffer Over Requirement (basis points) Dividend Payout Ratio 25% 25% - Dividends and Share Buybacks as % of Profit after Tax Special dividend and s
Slide 23: Looking ahead
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Slide 24: Carrying Momentum into H2
Carrying Momentum into H2 Kvika remains well-positioned to deliver on its strategic ambitions Loan book growth Fee generation Funding and capital • Lending momentum • Focus on fee generation • Preparation for covered accelerating on the back of increased capital and across all segments bond issuance
Slide 25: Merger Discussions with Arion Banki
Merger Discussions with Arion Banki Arion’s offer underscores the strength of Kvika, the result of a structured process and strategic review Process expectations Arion’s bid offers the A structured process and strategic review was initiated following interest from Arion and Íslandsbanki. greatest lo
Slide 26: Disclaimer
Disclaimer This presentation and the information contained therein has been prepared by Kvika banki hf. on a best knowledge basis. Any statements or assumptions are set forth by Kvika alone and not by any third party. Forward looking statements may deviate from what is presented in this presentation
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