Arion Banki Hf · OMXICE:ARION
Arion Banki Hf — Q4 2025 Earnings Presentation
34 slides from Arion Banki Hf's earnings presentation, Feb 12, 2026
Slide 1: Q4 and full-year results 2025
Q4 and full -year results 2025 Investor presentation 11 February 2026
Slide 2: Continued delivery on financial targets
Continued delivery on financial targets Strong 14.9% ROE in 2025 and a dividend proposal of ISK 11.5 per share Medium-term Historical performance – selected metrics 2025 targets ROE 14.9% ✓ Exceed 13% Return on Equity Cost-to-core income ratio1 42.3% ✓ Below 45% Core income2 / REA 7.4% ✓ Exceed 7.2%
Slide 3: Key milestones of the year
Key milestones of the year Retail bank drove loyalty and growth Merger discussion initiated between Stefnir Funds changed the game with through customer rewards Arion and Kvika customer-focused enhancements • Successful launch of Arion Rewards with over • Stefnir strengthened its value proposition w
Slide 4: Merger discussions between Arion Bank and Kvika continue
Merger discussions between Arion Bank and Kvika Bank continue Phase 1 Completed Letter of intent signed on 6 July 2025 Focus has been on pre-discussions with the Agreement on heads of terms, including exchange ratios ICA which are going according to schedule Phase 2 Ongoing Due diligence progress Di
Slide 5: Arion Bank's Arctic strategy and growing regional presence
Arion Bank’s Arctic strategy and growing Arctic Investments Conference 2025 regional presence - fourth consecutive year The Arctic region has gained increased attention amid heightened geopolitical interest due to its strategic location and resources Our focus in the Arctic Arctic loan book ISK bn a
Slide 6: The first phase of Blikastaðir due to be approved in Q2 2026
The first phase of Blikastaðir due to be approved in Q2 2026 • Arion Bank and Mosfellsbær municipality signed a new development agreement for the land of Blikastadir in January • The main changes are earlier payments to fund infrastructure, including schools and preschools • Increase in payments fro
Slide 7: Women Invest
Women Invest First two years 8,000 women have participated in Initiative launched in January 95 seminars 2024 • Women's subscription to funds • Seminars and online resources increased by 67% providing accessible guidance on • Women's transactions in funds how to start investing increased by 45.5% •
Slide 8: Sustainability highlights 2025
Sustainability highlights 2025 Committed sustainable finance by category 1% 1% Green buildings • Reduction of GHG emissions from own activities (scopes 1&2) by 64.7% in 2025 calculated from 2015 Affordable housing 5% • Emission intensity for lending and investments (excluding 5% Sustainable marine v
Slide 9: Strong ESG ratings
Strong ESG ratings Arion Bank ranks in the MSCI concludes that Arion Bank is now in 3% category AA with a score of 8.4 (on a scale of 1–10). A score of 8.4 is in the upper range of AA and TOP Laggard Average Leader only 0.18 points away from reaching AAA. The Bank is classified as a “Leader”. of reg
Slide 10: Economic conditions remain challenging
Economic conditions remain 14% Growth contributions of GDP components 6% CBI's GDP growth forecasts challenging 12% 5% 10% GDP increased by 1.2% year-on-year in Q3, 8% 4% according to preliminary data. As in previous 6% quarters, private consumption was the main driver 4% 3% behind economic growth,
Slide 11: Cooling economy, persistent inflation
Cooling economy, Exchange rate - daily average Unemployment - share of workforce, 3 month moving average persistent inflation 160 6% 155 The labor market is showing signs of moderation. 5% 150 Private-sector employment has fallen year-on-year, 4% pushing unemployment gradually higher. 145 Unemployme
Slide 12: Small economy, strong foundations
Small economy, strong foundations CBI's FX reserves Net international investment position Total exports composition - bn. EUR - % of GDP - index, total in 2012=100 8 50% 160 6 140 0% 120 4 -50% 100 2 80 -100% 60 0 40 -2 -150% 20 -4 0 -200% 2015 2022 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 13: Key takeaways from Q4 2025 and for the full year
Key takeaways from Q4 2025 and for the full year ‣ Solid quarter with an ROE of 11.6% concluding a strong year for the Group, with an ROE of 14.9% Operational performance ‣ Fourth quarter results include provisioning for annual employee incentive scheme ‣ Diversified pillars of the Group continue to
Slide 14: Income statement Q4 2025
Income statement Q4 2025 Net interest income Q4 2025 12,350 Q4 2024 11,246 Diff 10% Q3 2025 13,826 Diff (11%) Net fee and commission income 4,055 4,136 (2%) 4,003 1% − Net earnings attributable to shareholders of ISK Insurance service results 446 326 37% 630 (29%) 6.2bn, resulting in a return on equ
Slide 15: Income statement 2025
Income statement 2025 Net interest income 2025 52,542 2024 46,302 Diff 13% Net fee and commission income 17,147 15,360 12% − Net earnings attributable to shareholders of ISK Insurance service results 2,111 2,166 (3%) 30.6bn, resulting in a return on equity (ROE) of 14.9% Net financial income 1,075 2
Slide 16: Net interest income
Net interest income Net interest income (ISK bn) Credit risk (ISK bn) Fluctuations in net interest income mainly results from change in inflation between periods − In Q4, net interest income reached ISK 12.4bn, reflecting a 9.8% annual increase − NIM was 2.9% in Q4, the same as in Q4 2024 − The CPI
Slide 17: Net fee and commission income
Net fee and Net fee and commission income (ISK m) Net fee and commission income (ISK m) commission income Fees remain diversified and robust − Diversified fee income delivered above ISK 4bn for every quarter in 2025 − Asset management fees remained strong. Assets under Management and Supervision gre
Slide 18: Combined ratio below 90% for the second year in a row
* Combined ratio (%) Vördur net earnings (ISK m) Combined ratio below 90% for the second year in a row Q4 2025 − Profit from insurance operations in Q4 were ISK 395m compared with ISK 348m in Q4 2024 − Claims ratio was similar to the ratio in Q4 2024 whereas net reinsurance cost was lower in 2025 Fu
Slide 19: Net financial income
Net financial income Net financial income (ISK m) Bond holdings (ISK bn) Recovery in markets in the quarter following challenging first nine months − Vördur's total investment portfolio stands at ISK 34.7bn, generating a profit of ISK 1,021m for the quarter, which includes adverse net impacts from i
Slide 20: Operating expenses
Operating expenses* Cost ratios (%) Total operating expenses (ISK bn) Stable cost base - Total operating expenses outlined here encompass costs associated with the insurance business which is reflected through insurance service results post IFRS 17 - Total operating expenses increased by ISK 237m, o
Slide 21: Balance sheet
Balance sheet Solid growth in loans and deposits Assets 31.12.2025 30.09.2025 Diff. 31.12.2024 31.12.2023 31.12.2022 Cash & balances with CB 150 110 36% 124 102 114 - Loans to customers increased by ISK 27bn or Loans to credit institutions 23 26 (12%) 26 29 46 2.1% in Q4 Loans to customers 1,329 1,3
Slide 22: Loans to customers
Loans to customers Loans to customers (ISK bn) Loans to corporates by sector (%) Balanced loan portfolio the n o ation and - Loans to customers total ISK 1,329bn at the end of co unication technolog the year, increasing by ISK 99bn or 8.0% during the cco odation and year. Loan growth is almost entir
Slide 23: Residential mortgages
Residential mortgages Residential mortgages by interest rate type (ISK bn) Household debt to GDP (%) Low default rates and comfortable LTV levels. Interest rate levels and recent legal uncertainty have impacted portfolio growth and composition - Monetary tightening has resulted in a significant shif
Slide 24: 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 ratio has increased in c
Slide 25: 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 Loans to customers are 0.94% provisioned Loans to corporates are 1.43% provisioned at Expected normalization of economic conditions on the back of high real
Slide 26: 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 921bn represent o the Bank’s total liabilities - Stable deposits consist of deposits from individuals, E’s and co o ates wit
Slide 27: 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) - Refinance of 2026 maturities began in Q3 2025 - Refinance of EUR senior preferred bond maturing in 2026 was successfully completed -
Slide 28: Own funds
Own funds Capital ratio (%) Leverage ratio (%) Strong capital position - CET1 position is 308bps above regulatory requirement - Net earnings 2025 of ISK 30.6bn and foreseeable dividends of 50% thereof are included in the capital ratios presented - A buy-back of ISK 5bn approved by the Board of Direc
Slide 29: Own funds
Own funds Own funds and capital requirements (%) The capital ratios continue to be strong 21.2 – 22.2 - On 30 June, the FSA presented the Bank with a Pillar 2 requirement of 1.9% as a result of the SREP process based on year-end 2024 financials - The medium-term capital management buffer target is a
Slide 30: Going forward
Going forward Operational momentum External environment Strategic development • Strong operating performance for • Cautious stance as to evolving • Merger discussions with Kvika the year demonstrates good external rate and economic are on track momentum in core earnings and environment • Potential m
Slide 31: 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) ie atio ie atio 31
Slide 32: 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 (%) 32
Slide 33: Key figures
Key figures* Operations 2025 2024 2023 2022 2021 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Net interest income 52,542 46,302 44,685 40,201 32,063 12,350 13,826 14,200 12,166 11,246 Net commission income 17,147 15,360 16,389 16,449 14,673 4,055 4,003 4,553 4,536 4,136 Operating income 78,391 66,451 64,
Slide 34: 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