Kvika Banki Hf · OMXICE:KVIKA
Kvika Banki Hf — Q3 2025 Earnings Presentation
27 slides from Kvika Banki Hf's earnings presentation, Nov 6, 2025
Slide 1: Kvika banki hf. Q3 2025 Financial Results
Kvika banki hf. Q3 2025 Financial Results 6 November 2025
Slide 2: Q3 2025
Q3 2025 Profit before tax ISK 1,969 million compared to ISK 1,813 million in Q3 2024 Profit before tax ISK 1,969 m. Increasing by ISK 156 million from previous year or 8.6% Net interest income ISK 2,953 million compared to ISK 2,429 million in Q3 2024 Profit after tax ISK 1,472 m. Increasing by ISK
Slide 3: Auður heima success driving continued NII growth
Commercial Banking Segment highlights Auður heima success driving continued NII growth • Strong performance from Auður heima: The Auður heima mortgage portfolio reached over ISK 19 billion by the end of Q3. Together with growing deposits, this has supported a 6.6% year-on-year increase in Net Intere
Slide 4: Solid quarterly performance with continued improvement in Corporate Finance
Investment Banking Segment highlights Solid quarterly performance with continued improvement in Corporate Finance • Market activity in the securities and FX markets declined slightly during Q3, falling below the year- to-date average. The króna remained relatively stable against major currencies, en
Slide 5: Assets under management continue to grow in Q3 but outlook uncertain
Asset Management Segment highlights Assets under management continue to grow in Q3 but outlook uncertain • Equity markets initially experienced volatility during the third quarter, influenced by uncertainty surrounding U.S. trade policy. However, sentiment improved as the quarter progressed, contrib
Slide 6: Record quarter with increased activity across UK operations
UK Segment highlights Record quarter with increased activity across UK operations • Q3 delivered another period of strong performance across both lending and Private Equity, with total profits from the UK segment of ISK 563 million, the highest quarterly profits ever • Net Interest Margin remains he
Slide 7: Financials
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Slide 8: Income Statement
Income Statement Q3 2025 Income Statement ISK m. Q3 2025 Q3 2024 Diff. Q2 2025 Diff. Net interest income 2.953 2.429 524 2,962 (9) Net fees and commissions 1.571 1.552 19 1,935 (364) • Solid quarterly performance driven by strong net interest Other net operating income 338 474 (136) 231 107 income,
Slide 9: Income Statement
Income Statement 9M 2025 Income Statement ISK m. 9M 2025 9M 2024 Diff. Net interest income 8.831 7.183 1.649 • Net interest income increased by 23.0% year-on-year to ISK Net fees and commissions 5.026 4.536 490 8.8 billion, supported by continued loan book growth Other net operating income 581 800 (
Slide 10: Net Interest Income
Net Interest Income Sustained momentum in retail lending and strong margin resilience Net interest income Net interest margin development Q3 2024 to Q3 2025 / ISK m. (%) / net interest income divided by total average interest-bearing assets 1,517 606 (664) 2,953 (182) 2,429 (753) • Net interest inco
Slide 11: Net Fee and Commission Income
Net Fee and Commission Income Fee income broadly in line with year-to-date trend Net fee and commission income Net fee and commission income Q3 2024 to Q3 2025 / ISK m. ISK m. 1,552 90 37 1,571 1,935 (26) (8) 1,552 1,601 201 1,571 (39) (35) 1,520 70 89 138 160 526 590 464 459 127 555 159 161 117 122
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 Q3 2024 to Q3 2025 / ISK m. Composition / ISK m. 474 Net financial income Other operating income Profit from associates 338 567 (98) 44 (37) 474 70 338 231 33 • O
Slide 13: Operating Expenses
Operating Expenses Cost efficiency maintained with disciplined expense control Employee development Cost to core income Full time employees at the end of each period (%) Cost to core income Excl.one-off costs 249 253 253 249 246 68.9% 69.5% • Operating expenses amounted to ISK 2,740 million in Q3 57
Slide 14: Balance Sheet: Assets
Balance Sheet: Assets Strong liquidity position and continued loan book growth Assets ISK bn. 363.8 354.6 361.2 352.7 342.8 Assets held for sale 21.3 21.2 54.5 57.7 21.4 15.1 9.0 16.2 Intangible assets 21.9 21.7 • The bank’s balance sheet is now broadly back to its pre- 17.2 12.0 Other assets divest
Slide 15: Loans to Customers
Loans to Customers Mortgage growth drives expansion of the loan book Loans to customers Loan to value distribution ISK bn. ISK bn. Individual Corporate Other 31.12.2024 30.9.2025 146.0 150.2 160.6 172.1 195.7 38.1% 38.8% 37.5 39.7 39.6 44.2 • Loans to customers increased to ISK 195.7 billion in Q3 6
Slide 16: Balance Sheet: Liabilities
Balance Sheet: Liabilities Stable funding base with balanced mix of deposits and market funding Liabilities and equity ISK bn. 363.8 354.6 361.2 352.7 342.8 15.4 27.3 27.3 13.5 12.7 Liabilities of asset held for sale 20.4 6.2 17.2 39.7 14.9 14.4 13.9 80.2 81.9 Other 45.4 37.1 47.8 • Total liabilitie
Slide 17: Credit Quality
Credit Quality Stable credit quality and low impairment levels 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 • Loan book quality remained stable in Q3, with a modest 1.6% 1.5%
Slide 18: Deposits
Deposits Retail deposits remain a stable core funding base Deposits by type Loans to deposits ISK bn. (%) 180.2 178.4 4.1 3.0 110% 168.0 96% 95% 160.1 163.4 89% 92% • Total deposits amount to ISK 178.4 billion at the end of Q3 3.5 3.5 3.5 35.1 29.4 2025, slightly lower than in Q2 as balances from fi
Slide 19: Debt Issuance
Debt Issuance Steady funding profile supported by international market access Development of market funding MREL requirements • Market funding is largely unchanged from Q2 with the main ISK bn. 30.09.2025 change being the partial repayment of secured borrowings 99.6 MREL-RWEA: Percentage of risk- MR
Slide 20: Liquidity and Funding Ratios
Liquidity and Funding Ratios Continued strong liquidity position Total liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) 30.9.2025 / (%) 30.9.2025 / (%) Regulatory minimum Regulatory minimum 159% 160% 1.000 910% 900 160 148% 144% 148% 900 900 780% 800 140 800 800 700 659% 700 600 120 70
Slide 21: Capital Position
Capital Position Strong capital position well above regulatory requirements • CAR of 23.0% at the end of September, well above Kvika’s management target as expected during the transitional CET1 CAR period post-divestment (%) (%) 23.5% 23.9% 23.3% 23.0% • CAR of 22.5% excluding unaudited retained ear
Slide 22: Financial Targets
Financial Targets Target 12M 2024 Q3 2025 Return on Tangible >20% 17.4% 17.8% Equity Pre-tax Capital Adequacy Ratio 200-400 bps. 480 bps. 510 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: In a Strong Position to Drive Business Plan
In a Strong Position to Drive Business Plan Kvika remains well-positioned to deliver on its strategic ambitions Kvika is in a favorable position ✓ Loan book growth on track ✓ UK exposure adds diversification The external environment remains Driven by strong demand in Auður Heima UK operations repres
Slide 25: Merger Process Continues
Merger Process Continues Progress in line with original plans Process expectations Phase I • Letter of intent signed • Agreement on heads of terms including exchange ratios Pre-notification discussions with the ICA have commenced, and mutual due diligence is nearing Phase II Due diligence about to c
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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