Arion Banki Hf · OMXICE:ARION
Arion Banki Hf — Q1 2026 Earnings Presentation
32 slides from Arion Banki Hf's earnings presentation, May 7, 2026
Slide 1: Q1 results 2026
Q1 results 2026 Investor presentation 6 May 2026
Slide 2: Key results
Key results Medium-term targets Q1 2026 Key results Return on equity1 Exceed 13% 13.9% Core operating income2 / REA Exceed 7.2% 8.2% Solid start to the year Exceed weighted average Insurance revenue growth (YoY)3 7.2% 13.9% ROE vs medium-term target of above 13% growth of competitors ‒ Good momentum
Slide 3: Operational highlights in Q1 2026
Operational highlights in Q1 2026 Arion Rewards gaining traction Successful international funding activities First phase of Blikastaðir zoning plan finalized in the quarter • Over 53,000 customers are now enrolled in the Arion Rewards program • The Arion Rewards deposit accounts grew by • SEK 850m a
Slide 4: Merger discussions discontinued – strategy clear and unchanged
Merger discussions d iscontinued – strategy clear and unchanged ICA negative feedback results in termination of discussions Following extensive pre-notification discussions between Arion, Kvika and the Icelandic Competition Authority (ICA), the ICA communicated its preliminary view on 15 April 2026
Slide 5: EUR 100m European Investment Bank (EIB) financing to support Arctic marine industries
EUR 100m European Investment Bank (EIB) financing to support Arctic marine industries - Agreement marks first EIB financing of its kind in the region and the first blue economy facility - EIB lends Arion Bank EUR 100 million to promote sustainable fisheries, land-based aquaculture and other marine i
Slide 6: First phase of Blikastaðir zoning plan finalized
First phase of Blikastaðir zoning plan finalized - Arion Bank has led the Blikastaðir development through its wholly owned subsidiary, Blikastaðaland ehf., in close partnership with Mosfellsbær municipality - The zoning plan for Phase I has now been completed, representing a key milestone for the pr
Slide 7: Economic outlook: Modest growth despite turmoil
Economic outlook: Modest 14% Growth contributions of GDP components Economic growth - growth contributions of GDP components growth despite turmoil 12% 5% 10% 4% GDP growth came in at a modest 1.3% growth last 8% 3% 2.2% 2.3% year. Growth was mainly driven by private 6% 2% 1.6% 1.3% consumption, whi
Slide 8: Pessimism builds as the housing market cools
Pessimism builds as the 14% Registered unemployment 180 Gallup’s consumer expectation housing market cools 12% 160 Equally many optimistic and pessimistic The labour market is cooling, consumer sentiment 140 remains weak and the housing market is still working 10% 120 through an imbalance, with aver
Slide 9: Central Bank between rock and a hard place
Central Bank between rock 12% Inflation and 12-month inflation expectations Fuel prices -ISK per litre - simple average and a hard place 10% 350 330 310 Inflation has continued to be more persistent than 8% 290 previously expected. Although domestic demand is 270 already softening, the labour market
Slide 10: 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% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 11: 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 12: Key takeaways from Q1 2026
Key takeaways from Q1 2026 ‣ Solid start to the year with ROE 13.9% in the first quarter Operational performance ‣ Diversified pillars of the Group continue to support robust earnings momentum through the cycle ‣ In line with guidance, ongoing fluctuation in the interest margin reflecting movements
Slide 13: Income statement Q1 2026
Income statement Q1 2026 Net interest income Q1 2026 16,303 Q1 2025 12,166 Diff 34% Q4 2025 12,350 Diff 32% Net fee and commission income 3,876 4,536 (15%) 4,055 (4%) − Net earnings attributable to shareholders of ISK Insurance service results (66) (31) - 446 - 7.3bn, resulting in a return on equity
Slide 14: Net interest income
Net interest income Net interest income (ISK bn) Credit risk (ISK bn) Fluctuations mainly due to short-term .3 909 93 9 9 93 0 inflation impact . 3. . . .0 3. . 3. .0 3.3 . .3 − In Q1, net interest income reached ISK 16.3bn, 3. .9 reflecting a 34.0% annual increase − NIM was 3.8% in Q1, compared wit
Slide 15: Net fee and commission income
Net fee and Net fee and commission income (ISK m) Net fee and commission income (ISK m) commission income , 9 , ,3 9 Diversified and robust , 3 , 3 ,3 0 ,0 39 , 3,903 − Asset management fees remained stable and ,0 , 3 ,003 resilient. Following strong growth in Assets under 3, ,003 Management and Sup
Slide 16: Solid start to the year in insurance
* Combined ratio (%) Vördur net earnings (ISK m) Solid start to the year in insurance 03.9 00. 99. , 3 , 9 . 93.3 9 . 9. . 9. 0. .0 9. .3 − Insurance revenue grew by 7.2% in the first .9 . , 0.0 quarter, exceeding inflation and outperforming .9 39 . 9 competitors’ weighted average revenue growth of
Slide 17: Net financial income
Net financial income Net financial income (ISK m) Bond holdings (ISK bn) Challenging market conditions, especially . in equities 3.9 .0 ,3 . . . .9 − Vördur’s total investment portfolio stands at ISK 3 . 0.0 . 35.7bn, generating a profit of ISK 138m for the ,0 . 9. 3. 3 .9 quarter, which includes ad
Slide 18: Operating expenses
Operating expenses* Cost ratios (%) Total operating expenses (ISK bn) Stable cost base while headline increase . . . 9.9 .3 . impacted by one-off items .3 . 0. . . .0 0.0 3. . 3. - Total operating expenses outlined here encompass 39. 3. 3.0 3 .3 3. costs associated with the insurance business which
Slide 19: Balance sheet
Balance sheet Simple and robust Assets 31.03.2026 31.12.2025 Diff. 31.03.2025 31.12.2024 31.12.2023 Cash & balances with CB 110 150 (27%) 125 124 102 - Loans to customers increased by ISK 23bn or Loans to credit institutions 25 23 10% 27 26 29 1.7% in Q1 Loans to customers 1,352 1,329 2% 1,234 1,230
Slide 20: Loans to customers
Loans to customers Loans to customers (ISK bn) Loans to corporates by sector (%) Balanced loan portfolio and continued ,3 9 ,3 ther growth , 3 , 30 nformation and ,0 communication technology - Loans to customers total ISK 1,352bn at the end of 9 00 9 9 Accommodation and the quarter, increasing by IS
Slide 21: Residential mortgages
Residential mortgages Residential mortgages by interest rate type (ISK bn) Interest rate profile for fixed mortgages (ISK bn) Low default rates and comfortable LTV levels 9 9 9 3 0 - Monetary tightening has resulted in a significant 3 shift towards indexed mortgages since 2022. 33 CPI-linked loans n
Slide 22: 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 .3 .3 . . NPL ratio has recently trended upwards 3. 3. 3. 3. .9 .9 .9 3 .9 . .3 - The non-
Slide 23: 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 The impairment ratio was 0.91%, compared to Loans to corporates provisioned 1.37% at Over the past few years, probability weights have been tilted toward the
Slide 24: Deposits from customers
Deposits from Deposits from customers (ISK bn) Deposit growth by LCR outflow category (ISK bn) customers 9 0 93 0 9 93 93 3 Continued momentum in stable deposits 0 3 9 0 - Deposits from customers of ISK 932bn represent 9 of the Bank’s total liabilities 9 - Stable deposits consist of deposits from in
Slide 25: 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) 9 9 - EUR 300m 5-year European covered bond 0 33 0 393 issued in February 9 9 9 - Priced at 2.75% coupon (40 bps over mid-swaps) 0 3 -
Slide 26: Own funds
Own funds Capital ratio (%) Leverage ratio (%) Strong capital position . . . . . - CET1 position is 318bps above regulatory .0 . requirement . .9 . . 3. - Net earnings in the quarter of ISK 7.3bn and .3 . . foreseeable dividends of 50% thereof are . included in the capital ratios presented . . . . -
Slide 27: Own funds
Own funds Own funds and capital requirements (%) Ongoing progress towards optimized capital position . 21.2 – 22.2 . - Q1 net earnings of ISK 7.3bn and foreseeable dividends of 50% thereof are 9. 9. 9. . included in the capital ratios presented. . . - On 30 June 2025, the FSA presented the Bank with
Slide 28: Going forward
Going forward Operational momentum External environment Strategic development • Solid start to the year, momentum • Cautious stance amid macro and • Strategy, targets and capital continues geopolitical uncertainty priorities unchanged • Diversified and seasoned • Persistent inflation keeps monetary
Slide 29: Key financial indicators - quarterly
Key financial indicators - quarterly Return on equity (%) Total cost-to-Core income ratio (%) Net interest margin (%) 9. . 3. .9 3. . 3. 3.3 . . .0 . 3. 3. 3. . .9 .9 3.9 0.0 . 3 . 3 . 3 .3 . . 9. Loans to deposits ratio (%) Core operating income / REA (%) Capital ratio (%) (without loans financed b
Slide 30: Key financial indicators - annual
Key financial indicators - annual Return on equity (%) Total cost-to-core income ratio (%) Net interest margin (%) 3. 3.9 . . . 3. 3.0 . . 0.0 3. 3. 3. 3. 9. 0 0 3 0 0 0 0 0 3 0 0 0 0 0 3 0 0 0 CPI imbalance (ISK bn) Core operating income / REA (%) Risk exposure amount / Total assets (%) 0 . 0 . . 0
Slide 31: Key figures
Key figures* Operations Q1 2026 Q1 2025 Q1 2024 Q1 2023 Q1 2022 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Net interest income 16,303 12,166 11,245 10,994 9,476 16,303 12,350 13,826 14,200 12,166 Net commission income 3,876 4,536 3,365 4,451 3,556 3,876 4,055 4,003 4,553 4,536 Operating income 19,460 1
Slide 32: 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