Kvika Banki Hf · OMXICE:KVIKA
Kvika Banki Hf — Q2 2026 Earnings Presentation
26 slides from Kvika Banki Hf's earnings presentation, Aug 12, 2026
Slide 1: Kvika banki hf. Q2 2026 Financial Results
Kvika banki hf. Q2 2026 Financial Results 12 August 2026
Slide 2: Q2 2026 Key results
Q2 2026 Key results Medium term target Q2 2026 Profit before tax ISK 1,545 m. compared to ISK 2,025 m. in Q2 2025 Decreasing by ISK 480 m. from previous year, or 23.7% Return on tangible 20% - 15.1% equity pre-tax Net interest income ISK 3,013 m. compared to ISK 2,962 m. in Q2 2025 Increasing by ISK
Slide 3: Near-Term Earnings Impact, Long-Term Value Creation
Near-Term Earnings Impact, Long-Term Value Creation Various measures taken in the quarter dampen reported earnings but materially improve returns going forward Item Impact in the quarter Impact on coming quarters Large dividend Lowers interest income Reduces equity tied up and increases ROTE Balance
Slide 4: Commercial Banking: Solid growth in both deposit taking and lending
Commercial Banking Segment highlights Solid growth in both deposit taking and lending • Strong deposit growth, with deposits increasing by ISK 12 bn. during Q2 (+8% quarter-on-quarter). Growth was driven by both the Auður online savings platform and other deposit products, with total deposits surpas
Slide 5: 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 nearly 4% quarter-on-quarter despite a slowdown in the economic environment. Increased impairment provisions reflect a more cautious approach amid height
Slide 6: Asset Management: Operational efficiency and growth initiatives
Asset Management Segment highlights Operational efficiency and growth initiatives • Assets under management decreased slightly from ISK 450.4 bn. to ISK 448.6 bn. during Q2 2026. Excluding the liquidation of assets held by fund FÍ fasteignafélag slhf., which was sold during the quarter and is expect
Slide 7: UK: Sustained deal momentum amid strong market competition
UK Segment highlights Sustained deal momentum for the UK business amid strong market competition • The UK business maintained strong activity levels across both PE and lending in Q2, in a market characterised by strong competition. • A strong pipeline from Q1 converted towards the end of Q2 and carr
Slide 8: Financials
ntl KV\KA Financials
Slide 9: Income Statement Q2 2026
Income Statement • Q2 2026 performance reflected resilient Q2 2026 net interest income and continued cost discipline, resulting in pre-tax profit of ISK 1,545 m., decreasing by 23.7% YoY and 14.6% from Q1 2026 Income Statement ISK m. • Net interest income decreased by ISK Q2 2026 Q2 2025 Diff. Q1 20
Slide 10: Income Statement 6M 2026
Income Statement 6M 2026 • Strong 6M performance with solid net interest income growth and disciplined Income Statement ISK m. cost management, resulting in pre-tax 6M 2026 6M 2025 Diff. profit from continuing operations Net interest income 6,279 5,879 400 increasing by 23.0% YoY Net fees and commis
Slide 11: Net Interest Income
Net Interest Income Continued lending momentum and favorable funding base result in strong NIM Net interest income Net interest margin development Q2 2025 to Q2 2026 / ISK m. (%) / net interest income divided by total average interest-bearing assets • Net interest income increased by 1.7% from Q2 20
Slide 12: Net Fee and Commission Income
Net Fee and Commission Income Fee income remains subdued but resilient Net fee and commission income Net fee and commission income Q2 2025 to Q2 2026 / ISK m. ISK m. 1,935 1,935 (15) 18 1,571 1,486 50 1,416 1,416 525 1,265 • Net fee and commission income (382) 187 570 555 remains subdued and amounte
Slide 13: Other Net Operating Income
Other Net Operating Income Improved quarter despite challenging market conditions Other net operating income Other net operating income Q2 2025 to Q2 2026 / ISK m. Composition / ISK m. 642 60 327 146 48 231 338 327 • Other net operating income increased 231 33 to ISK 327 m. in Q2 2026 from ISK 231 8
Slide 14: Operating Expenses
Operating Expenses Underlying costs trending lower despite restructuring charge in Q2 2026 Employee development Cost to core income Full time employees at the end of each period (%) 249 246 250 248 232 • Administrative expenses amounted to 72.6% ISK 2,947 m. in Q2 2026, decreasing by 62.8% 65.2% 1.1
Slide 15: Balance Sheet: Assets
Balance Sheet: Assets Loan book growth drives larger balance sheet, while liquidity remains strong Assets ISK bn. 375.7 361.2 352.7 359.8 21.3 343.1 20.3 • Total assets amounted to ISK 375.7 bn. 21.2 21.0 15.1 15.1 9.0 21.1 15.8 at the end of Q2 2026, increasing by 11.0 9.5% from year-end 2025 172.1
Slide 16: Loans to Customers
Loans to Customers Loan book continues to grow in line with business plan Loans to customers Loan to value distribution ISK bn. ISK bn. • Loans to customers amounted to ISK Individual Corporate 31.12.2025 30.6.2026 223.3 bn. at the end of Q2 2026, increasing by ISK 15.8 bn., or 7.6%, from 35.4% 33.9
Slide 17: 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 strong, with no signs of broader deterioration despite a 2.0% 1.9% prolonged period of elevated interest 2.3% 2.6% 2.9% 3.5%
Slide 18: Balance Sheet: Liabilities
Balance Sheet: Liabilities Stable funding base with balanced mix of deposits and market funding Liabilities and equity ISK bn. 375.7 361.2 352.7 359.8 343.1 5.5 15.3 15.4 12.7 17.2 13.5 6.2 15.5 7.4 6.8 • Total liabilities and equity amounted to 72.7 86.1 80.2 81.9 73.2 ISK 375.7 bn. at the end of Q
Slide 19: Deposits
Deposits Total deposits surpassed ISK 200 bn. for the first time Deposits by type Loans to deposits ISK bn. (%) 120.1% 201.2 109.7% 114.4% 111.0% 1.8 95.5% 189.7 180.2 2.0 178.4 33.8 • Deposits amounted to ISK 201.2 bn. at 4.1 172.8 3.0 the end of Q2 2026, increasing by 16.5% 2.3 40.3 from year-end
Slide 20: Debt Issuance
Debt Issuance Steady funding profile supported by international market access • Market funding increased to ISK 101.7 bn. at the end of Q2 2026, following the Development of market funding MREL requirements issuance of EUR 150 million senior ISK bn. 30.6.2026 unsecured bonds and SEK 300 million MREL
Slide 21: 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) 30.6.2026 / (%) 30.6.2026 / (%) Regulatory minimum Regulatory minimum 910% 160% 148% 7.000 160 200 137% 133% 137% 6.000 140 • The liquidity coverage
Slide 22: Capital Position
Capital Position Strong capital position well above regulatory requirements CET1 CAR (%) (%) 26.8% 26.7% 23.9% 23.8% 23.3% 23.0% 23.0% 20.5% 20.4% 18.3% • CAR of 23.0% at 30 June 2026, decreasing as special dividend was 17.9% 17.9% 17.9% 17.9% 17.7% distributed in June 12.9% 12.9% 12.9% 12.9% 12.8%
Slide 23: Going Forward
Going Forward
Slide 24: Progressing Strategic Initiatives to Drive Shareholder Value
Progressing Strategic Initiatives to Drive Shareholder Value Strategic initiatives following capital efficiency measures Loan book growth is proceeding as planned, Loan book growth of ISK 15.8 bn., or Continued loan book growth building a stable income base 7.6% from year-end 2025 Efficiency measure
Slide 25: 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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