Kvika Banki Hf · OMXICE:KVIKA
Kvika Banki Hf — Q1 2026 Earnings Presentation
32 slides from Kvika Banki Hf's earnings presentation, May 12, 2026
Slide 1: Kvika banki hf. Q1 2026 Financial Results
Kvika banki hf. Q1 2026 Financial Results 12 May 2026
Slide 2: Q1 2026 Key results
Q1 2026 Key results Medium term target Q1 2026 Profit before tax ISK 1,809 million compared to ISK 701 million in Q1 2025 Increasing by ISK 1,108 million from previous year, which was affected by non-recurring items, or 158% Return on tangible 20% - 15.7% equity pre-tax Net interest income ISK 3,266
Slide 3: Commercial Banking: solid first quarter in lending across all loan categories
Commercial Banking Segment highlights Solid first quarter in lending across all loan categories • Robust lending growth in Commercial Banking despite higher rates than expected, with total lending increasing by just over ISK 4bn in Q1, mainly driven by Auður Heima residential mortgages. • Auður Heim
Slide 4: Investment Banking: strong lending performance despite rising rates
Investment Banking Segment highlights Strong lending performance despite rising rates and challenging economic environment • The loan book grew by 4.7% in the first quarter, with strong fee income generation. This reflects solid performance in a challenging economic environment. • Interest rates wer
Slide 5: Asset Management: preparation underway for launch of new funds
Asset Management Segment highlights Preparation underway for launch of new funds • Preparations for the launch of a new credit fund (ACF VI slhf.) and a new private equity fund were initiated during the quarter. • Kvika Framtak ehf. formally commenced operations during the quarter and is responsible
Slide 6: UK: a strong start to 2026
UK Segment highlights A strong start to 2026 amid a challenging market backdrop • Q1 delivered a very solid performance for the UK business, with sustained high activity levels across both lending and private equity, reflecting continued momentum in origination and execution • Lending momentum remai
Slide 7: Financials
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Slide 8: Income Statement
Income Statement Q1 2026 Income Statement • Strong Q1 performance with solid net ISK m. interest income growth and disciplined Q1 2026 Q1 2025 Diff. Q4 2025 Diff. cost management, resulting in pre-tax Net interest income 3,266 2,917 349 3,065 201 profit from continuing operations Net fees and commis
Slide 9: Net Interest Income
Net Interest Income Continued lending momentum and favorable funding base result in strong NIM Net interest income Net interest margin development Q1 2025 to Q1 2026 / ISK m. (%) / net interest income divided by total average interest-bearing assets 1,710 • Net interest income increased by 12% 134 f
Slide 10: Net Fee and Commission Income
Net Fee and Commission Income Fee income remains subdued alongside muted domestic market activity Net fee and commission income Net fee and commission income Q1 2025 to Q1 2026 / ISK m. ISK m. • Net fee and commission income 1,520 97 1,935 1,486 remains relatively subdued and (22) (57) (9) 1,520 1,5
Slide 11: Other Net Operating Income
Other Net Operating Income Quarter characterized by weak domestic markets Other net operating income Other net operating income Q1 2025 to Q1 2026 / ISK m. Composition / ISK m. 642 132 135 146 (9) 338 • Other net operating income amounted 231 33 to ISK 135 million in Q1 2026, a 22 481 135 significan
Slide 12: Operating Expenses
Operating Expenses Cost base reaching normalization after one-off items in Q4 2025 Employee development Cost to core income Full time employees at the end of each period (%) Cost to core income Excl.one-off costs • Operating expenses amounted to ISK 253 249 246 250 248 3,014 million in Q1 2026, a de
Slide 13: Balance Sheet: Assets
Balance Sheet: Assets Decrease in liquid assets as loan book grows Assets ISK bn. 361.2 352.7 359.8 342.8 343.1 21.3 21.2 21.0 21.4 15.1 9.0 21.1 15.8 16.2 11.0 • Total assets amounted to ISK 359.8bn at the end of Q1 2026, increasing by 4.9% 172.1 160.6 195.7 216.9 YoY 207.6 • Loan book growth (+4.5
Slide 14: Loans to Customers
Loans to Customers • Loans to customers increased by ISK Loan book continues to grow in line with business plan 9.4bn in Q1 2026 (+4.5% vs year-end 2025), reflecting continued growth in line with the business plan Loans to customers Loan to value distribution • Growth was driven by residential ISK b
Slide 15: Credit Quality
Credit Quality Underlying credit quality remains strong Loans to customers risk stage allocation Impairment loss allowance Net loan book / (%) ISK bn. • Credit quality remains solid, with a temporary increase in Stage 3 driven by a single UK exposure 2.5% 2.3% 2.6% 2.9% 4.0% 5.6% 6.9% • The exposure
Slide 16: Balance Sheet: Liabilities
Balance Sheet: Liabilities Stable funding base with balanced mix of deposits and market funding Liabilities and equity ISK bn. 361.2 352.7 359.8 342.8 15.4 343.1 13.5 12.7 7.4 17.2 6.2 6.8 15.5 39.7 13.9 80.2 81.9 72.7 73.2 47.8 • Total liabilities amounted to ISK 359.8 billion at the end of Q1 2026
Slide 17: Deposits
Deposits Retail deposits remain a stable core funding base Deposits by type Loans to deposits ISK bn. (%) 120.1% 189.7 114.4% 109.7% 2.0 95.6% 95.5% 180.2 178.4 4.1 3.0 172.8 168.0 2.3 • Total deposits amount to ISK 189.7 3.5 40.3 billion at the end of Q1 2026, a 9.8% 35.1 29.4 29.7 growth from year
Slide 18: Debt Issuance
Debt Issuance Steady funding profile supported by international market access Development of market funding MREL requirements ISK bn. 31.03.2025 • Market funding remains stable following MREL-RWEA: Percentage of risk- MREL-TEM: Percentage of total repayments in Q4 2025 weighted exposure amount expos
Slide 19: Liquidity and Funding Ratios
Liquidity and Funding Ratios Strong liquidity position returning to normal levels Total liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) 31.03.2026 / (%) 31.03.2026 / (%) Regulatory minimum Regulatory minimum 159% 160% • The liquidity coverage ratio (LCR) is 910% 7.000 148% 6.000 160 1
Slide 20: Capital Position
Capital Position Strong capital position well above regulatory requirements CET1 CAR (%) (%) 26.8% 26.7% 23.9% 23.8% 23.9% 23.3% 23.0% 21.0% 20.5% 20.4% • CAR of 26.7% at 31.3.2026, including unaudited earnings, well above Kvika’s management target 18.0% 18.0% 17.9% 17.9% 17.9% 12.9% 12.9% 12.9% 12.
Slide 21: Kvika UK - Update
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Slide 22: Strong UK Performance
Strong UK Performance UK operations have grown significantly and now represent a meaningful part of the Group, with 30 employees UK net operating income, and % of group UK adjusted profit before tax1, and % of group ISK m. ISK m. 2,260 2,247 4,111 3,846 1,490 33.1% 33.3% 2,927 24.9% 20.7% 19.8% 17.0
Slide 23: UK Lending
UK Lending The loan book has doubled since 2021 Loan book ISK bn • Strong demand has enabled the Ortus team to more than double the loan book since 2021, with continued solid growth across the portfolio. • Ortus continues to see good market 48.0 momentum, with a record level of new 14% p.a. 44.8 loa
Slide 24: UK Private Equity
UK Private Equity Total private equity investments managed by Kvika UK have grown to approximately ISK 18bn. UK investments Q1 2024 Current UK investments Leading provider of complex care with a strong buy and Renowned provider of special needs care solutions Provider of technology-enabled energy ma
Slide 25: Ambitious Growth Plans Set in 2024 on Track
Ambitious Growth Plans Set in 2024 on Track The three-year target set in Q1 2024 is close to being achieved. We remain focused on the following areas: Loan book Aggregate AuM/investment position ISK bn ISK bn Lending • Approximately 87% of the plan has been delivered. Ortus is moving into larger len
Slide 26: Back to the Future
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Slide 27: Merger discussions concluded following ICA feedback
Merger discussions concluded following ICA feedback Kvika was invited to engage in Significant effort was devoted to the The outcome reinforces Kvika’s role as an discussions with both Íslandsbanki and process, including extensive and important competitive force in the Arion banki regarding potentia
Slide 28: Growth Plans Presented in 2024 Remain On Track
Growth Plans Presented in 2024 Remain On Track Loan book forecast to grow to ISK Mortgages introduced mid-year, Significant capital return to Capital optimization will drive 280-300 million in 2027 target diversification on track shareholders expected to continue pre-tax RoTE target Loan book growth
Slide 29: Significant Capital Release – Efficient Capital Structure
Significant Capital Release – Efficient Capital Structure Key lever to reach 20% RoTE target Capital base post capital release In February, Kvika highlighted significant capital (%) release potential following strong earnings and the implementation of CRR III. In April, the bank 26.7% took the first
Slide 30: Continued Strive for Shareholder Value
Continued Strive for Shareholder Value Strategic initiatives to follow capital efficiency measures Loan book growth is proceeding as planned, building a stable Continued loan book growth income base A strictly maintained cost base will support strong earnings as interest Cost efficiencies income gro
Slide 31: 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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